KOCHI: The extra high tension consumers of Kerala State Electricity Board are abandoning the high-cost power offered by the board and sourcing cheaper power through the open access system of power purchase. A source told this newspaper that at least 18 of the major extra high tension consumers are currently using open access mode instead of depending on the KSEB. According to a spokesman of KSEBL, 22 major high tension and extra high tension consumers of the board have taken no-objection certificate for open access mode. The large clients of the KSEB that have opted for open access included government-owned Kerala Minerals and Metals Ltd (KMML), Travancore Cochin Chemicals Ltd (TCCL), Hindustan Newsprints Ltd (HNL), Kerala Clays and Ceramics Ltd and major private companies such as Apollo Tyres Ltd , Carborandum Universal Ltd and many others.
The average cost of KSEB power for extra high tension consumers is in the range of Rs 4-5.80 per unit. But the consumers opting for open access mode is in a position to secure power at less than Rs 4 per unit, including the landing cost, the source said. Companies like KMML, TCCL and Carborandum Universal are opting for open access as power is one of the major input costs incurred by them. The companies buying power through the open access system will be able to get the same evacuated to their premises using the transmission and distribution lines of the KSEBL as the latter will not be in a position to refuse such services. The amendments in the Electricity Regulation Act state that a power utility cannot refuse such services in case a client requests so.
The trend is posing a serious threat to the existence of the KSEBL, said A.N. Rajan, president, and Jacob Lazar, secretary, of the Kerala Electricity Workers Federation. “We have opposed the clause permitting the evacuation of power through the open access system”, they pointed out. KSEBL is facing an accumulated revenue deficit of nearly Rs 4,944 crore. The hike in tariff approved by the Kerala State Electricity Regulatory Commission (KERC) on April 17 is expected to cut the revenue deficit by Rs 1,041 crore.
