The Hindu Business Line : KSEB in turnaround mode; not to hike tariffs

THE Kerala State Electricity Board (KSEB) is set to finish the current year with an operating profit, thereby negating any need for a revision in power tariffs during the year.

The board's turnaround is significant considering that it had posted a revenue deficit of Rs 1,007 crore in 2003-04, according to Mr C. Balakrishnan, Chairman of State Electricity Regulatory Commission (SERC).

While issuing its order on KSEB's tariff petition earlier this year, SERC had said that it would allow the board to impose a surcharge on power tariffs if the monsoon turned out to be less than normal. But the monsoon was quite good which ensured copious inflow to the State's hydel reservoirs. The board had filed the tariff petition based on an expected inflow equivalent to 6,500 million units of power to the reservoirs. However, till November 20, the reservoirs had received inflow to the tune of 7,675.14 million units.

This, with more rains yet to come, cheaper hydel power will be available in plenty this year in the State. This would help reduce the board's dependence on the costly thermal power, Mr Balakrishnan told newspersons here on Monday.

He said that the latest review of the situation showed that the board would be able to finish the year with a nominal revenue deficit of around Rs 50 crore what with the existing water storage in the reservoirs. This deficit, too, would be covered since more rain is in store in the current year.

He pointed out that the revenue deficit of KSEB had progressively come down over the last three years, not only due to good monsoon, but also because of more efficient revenue collection and reduction in transmission and distribution losses. The board had also tightened its control over expenditure.

The deficit, because of all these factors, declined from Rs 1,007 crore in 2003-04 to Rs 343 crore in 2004-05.

Mr Balakrishnan said that it was creditable that the board had achieved all this without going in for the unbundling exercise adopted by the power utilities in some other States. KSEB was still an integrated entity dealing with generation, transmission, distribution and trading, he added.

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