KSEB’s extra charges draw flak

THIRUVANANTHAPURAM: The industry has strongly objected to KSEB Limited's move to levy fuel price adjustment (FPA) charges on all consumers including bulk consumers to recover the additional financial liability incurred over approved level of generation and power purchase.

The Kerala HT and EHT Industrial Electricity Consumers' Association, which represents the industry, has argued that, leave alone liability, KSEBL had in fact had made a gain of more than Rs 63 crore through short term purchases. And this, according to the industry, is only one of the many gains of KSEBL this fiscal.

Between April and June this year, there was difference in the approved purchase cost from short term market and the market price.

While in April, the approved cost was Rs 5.73 per unit, the actual cost was Rs 5.34 per unit. In May, it was Rs 5.71 and Rs 4.76. In June, it was Rs 5.65 and Rs 4.86. The total savings in the three months, as a consequence, was Rs 63.65 crore.

KSEBL had further gains. It had received an excess of 238 million units from central generating stations that charge less than Rs 2 per unit.

While the approved supply from CGS for the three months from April to June was 2074.02 MU, the actual power received was 2312.91 MU.

All stations, except Vallur, provided excess power to KSEBL. The biggest gain was from Simhadri, an excess of nearly 62 MU. It is further stated that hydel stations, too, had provide at least 400 MU more than what was estimated at the beginning of the fiscal.

“It is clearly evident that KSEBL had gained as a result of all this. Still, they are trying to pass it of as a liability,” said A R Satheesh of Kerala HT and EHT Industrial Electricity Consumers' Association.

The association, with 166 members, has 29 major industries. Of the member HT & EHT industries about 31 industrial consumers have contracted for a maximum demand of more than 2000 KVA each with KSEBL.