Industrial consumers question rationale of KSEB surcharge

THIRUVANANTHAPURAM: Industrial consumers argued on Wednesday if the full impact of power purchases made by KSEB from the short-term markets and traders from April to June 2017 is taken into account, it would have to refund money to consumers instead of demanding a 14-paise surcharge.
In its petition before the commission, the Kerala HT-EHT Industrial Electricity Consumers Association pointed out the KSEB has not considered the purchases from the short-term market and traders in computing the fuel price adjustment (FPA) or surcharge.

‘’Instead, they said that ‘rates of purchase through short-term contracts are within the approved limits’,’’ association president A R Satheesh told the Electricity Regulatory Commission. If this amount also is factored in, then the FPA would be (-) Rs 21.70 crore, which has to be passed on to the consumers under the law.

‘’It means a reduction of 4.07 paise in tariff per consumer,’’ he said.
The KSEB also got into trouble for not including the details of electricity purchased from Reliance’s BSES Kochi thermal fuel power plant. The KSEB rationale was that BSES had not submitted bills for the sale and was also planning to move court. KSEB officers also informed the commission the purchase details would be included in a separate petition.
However, Commission chairman Preman Dinaraj observed procedural delays by KSEB would only aid BSES in filing a court case.

Consumers further said the KSEB had made a saving of Rs 20 crore through the power purchase deals as electricity was bought at unscheduled interchange rates which, at the time, was a mere 70 paise per unit and even lesser. ‘’If this rate is compared with the approved short term market rate of Rs 4 per unit, the KSEB’s saving on power purchase is around Rs 20 crore,’’ the Kerala HT-EHT Industrial Electricity Consumers Association said.