The Hindu Business Line : Kerala to advise SERC on policy matters

The Kerala Government will `guide' the State Electricity Regulatory Commission (SERC) on `some policy matters' by taking recourse to the rights conferred on it by the relevant provisions of the Central Electricity Act of 2003.

A key concern for policymakers has been the fact that the Act does not allow cross-subsidies, and insists on feeding the high-end and power-hungry customers at the cost of supply.

Tuned to policy

The State Cabinet had, on Friday, decided to invoke the powers granted to the Government under Section 108 of the Act to demand SERC that its directives on tariff-related matters be in line with the policy the State has been following all along.

This section of the Act says that the SERC shall function in accordance with the policy directions of the State Government.

According to officials, cross-subsidies are necessary if only to ensure social justice without unduly burdening the Government. SERC is being told to allow the Kerala State Electricity Board to continue to supply low-cost power to farmers, the weaker sections and domestic consumers.

The high-end customers shall pay higher rates to even out the impact on the coffers. In a related decision, the power utility will be allowed to purchase power from small hydel stations promoted by block/district panchayats at special rates.

SPECIAL RATES

The Act insists that private players be given open access to the transmission and distribution network. The Government's instruction to the SERC will be that open access should not be allowed in a manner that will allow private companies to indulge in "cherry picking."

The Government also intends to ask the SERC not to fix `standards of performance' on the public power utility without taking into consideration practical difficulties at the field level.

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