Fine-tune regulations, says KSEB

THIRUVANANTHAPURAM: The KSEB on Wednesday told the State Electricity Regulatory Commission its draft KSERC (Terms and Conditions for Determination of Tariff) Regulations, 2017, needed more fine-tuning. At a public hearing on the draft regulation, KSEB officers pointed out operation and maintenance (O&M) expenses allowed in the draft for the power transmission and generation wings was only half the expected expenditure and should be increased.

O&M expenses account for 22-24 per cent of the aggregate revenue requirement of KSEB. It also wanted the rate of return on equity to be fixed at 15.5 per cent. The draft regulations require power distribution licencees, including the KSEB, to submit tariff proposals for four years at one go.

Commission chairman Preman Dinaraj said the regulations would remove the uncertainty regarding power tariffs and offer better scope to investors. ‘’It would ensure price stability in the sector and curb wasteful expenditure,’’ he said.