The Hindu Business Line : Kerala State Electricity Board told to improve collection efficiency

THE Kerala State Electricity Regulatory Commission (KSERC) has strongly recommended that the State Electricity Board (KSEB) act decisively to improve collection efficiency from 94.8 per cent (April-July, 2003) to 98-99 per cent.

Addressing newspersons here, the Chairman of KSERC, Mr M.G.K. Pillai, and Member, Mr C. Balakrishnan, said an increase of 1 per cent in efficiency alone would improve cash flow by over Rs 30 crore on yearly basis.

During recent meetings with KSEB officials, the commission had suggested creation of a task force for collection of arrears. This task force needs to be set up at the earliest to pursue each case of default and take corrective action on a war-footing.

In the process, it is necessary to identify bad debts that would need to be written off. The commission would like to know the details of each case, action taken and the results thereof.

KSEB's outstanding dues, ranging from Rs 2 to Rs 80 crore on a case-to-case basis, stood at Rs 894.48 crore as on March 31, 2003.

In this connection, computerisation of billing is an activity calling for prompt action by the board. The commission set a target of March 2004, for achieving full computerisation, which would improve billing and collection and prevent theft and pilferage.

Similarly, replacement of faulty meters is a prerequisite for effective implementation of system improvement measures aimed at reducing financial losses.

The KSEB's tardy progress in the matter prompted the commission to summon full details regarding meter replacement subsequent to March 31, 2003. This was the target date set by the board for completing the programme of replacing faulty meters.

Generation and purchase: The commission did not know of any system in the KSEB for optimising utilisation of its own hydro generation and minimising the cost of purchase of power from external sources.

Hydro generation needed to be regulated on the basis of annual, monthly, fortnightly and daily schedules. These schedules need to be updated and revised on a daily and fortnightly basis depending on the changes in the availability of hydel power and economies of purchase, if any.

The commission wanted the board to institute a system of scheduling, a summary of which should be furnished on a fortnightly basis.

As far as the slow progress of APDRP (Accelerated Power Development and Reform Programme) scheme is concerned, the board would need to take immediate corrective action and put the scheme back on rails. Additional schemes should be formulated with a view to reducing borrowings at commercial rates of interest.

The commission noted with concern the huge pile-up of inventory, especially at the construction sites. The disposal of unwanted items alone would bring in revenue of about Rs 400 crore, which can significantly enhance cash flows and reduce debt burden.

Under the Electricity Act, 2003, the commission is required to target reduction of cross subsidisation of various consumer categories in a phased manner.

However, no tariff rationalisation could be possible since KSEB did not make available details of cost of service and accurate data regarding category-wise consumption.

The commission has since directed it to furnish details regarding cost of supply to the various categories of consumers and their consumption pattern, along with full supporting data, as early as possible.