The Hindu Business Line : Kerala SSI body seeks power at lower rates

THE Kerala State Small Industries Association (KSSIA) has suggested that the Kerala State Electricity Board (KSEB) should find ways to sell the entire power available from Central Generating Stations (CGS) to it at economical rates so that surrendering the allocated power from CGS could be totally avoided.

This will enhance the productivity in the industrial and service sectors and such efforts would boost up the revenue of the State exchequer by other means, said Mr Xavier Thomas Kondody, State President of the Association.

The KSEB has reported to have 1,100 million units of electricity as surplus in the coming year. More energy consumption by the industry at viable and flexible cost will naturally increase the employment opportunities, he added. The present system indicated that the KSEB is not technically and economically competent to handle the situation of `problem of plenty' or at least lacking measures to induce the Kerala consumers to consume more electricity for productive use throughout 24 hours or during when excess power available in the grid.

Mr Kondody, who is also the member in the State level advisory committee of State Regulatory Commission, said the Board should be able to analyse the energy requirements of the State at least for a future 10 years and plan the schemes of operations such as generation, distribution and transmission.

The R&D wing should be reactivated with adequate financial allocations to perform realistically and efficiently in advance planning and executing.

Referring to technical loss and commercial loss, he said the Commission should ask the Board to file figures separately on the technical loss and commercial loss. KSEB should resort to programmes for creating customer awareness in alternative energy consumption during peak hours and measures for conservation of electrical energy during peak hours etc.

A pricing policy of demand and supply and thereby an economic increase in generation and purchase of electricity should be resorted to instead of sticking on to a tariff structure which has no flexibility at all, he added.

The total accumulated subsidy due from the State is to the tune of Rs 4,325.14 crore, which is a colossal sum as far as the Board's total cash flow is concerned.

The receivables against the sale of power to the Government sectors is to the tune of Rs 1,416 crore, which is also a huge drain on the Board's current asset.

If the Government could pay at least 50 per cent of the sum, KSEB could reduce the tariff rate by another Re 1 per unit at an average for consumers, he said adding, that this would boost the economy in different ways.

The KSEB's various loan commitments seem to be under the burden of high rate of interest, which is 10.5 per cent. It should swap the high rated loans and resort to very low interest rated loans from banks, he said.

The KSEB should think of foregoing the fixed charge, the meter rent and miscellaneous charges out of the total non-tariff income estimated, by substantially reducing the power purchase cost and also by increasing employee productivity and reducing the employee cost.