Power tariff hike in Kerala likely to be announced today

Our Bureau Updated - July 25, 2012 at 08:55 PM.

The hike is not expected to be ‘pronounced’ in the case of those whose consumption does not exceed 150 units a month.

The State electricity regulatory commission is likely to announce a significant hike in electricity tariff on Thursday, the first in 10 years.

This comes on the back of an alarming drop in dam storage levels in the state, which depends mostly on hydel power.

VARYING HIKES

The hike is not expected to be ‘pronounced’ in the case of those whose consumption does not exceed 150 units a month, sources in the government said.

But those in the 150 to 500 units slab would likely be asked to pay 30 per cent more. The levy is expected to be ‘significantly higher’ for those in the 500 units and above slab.

Similarly, those who are in the higher slabs would likely come under the ‘time-of-the-day’ dispensation in place of the ‘telescopic’ tariff regime.

In a telescopic tariff structure, the rate increases in a linear fashion as the trend in consumption. Non-telescopic tariff for domestic consumers is believed to often result in distortion of consumption patterns to the detriment of the licencee’s (power utility) revenue.

FIXED CHARGES

Industrial consumers and commercial establishments are expected be spared from a major shock this time. All consumers would be asked to pay a fixed charge of Rs 20 from now.

Meanwhile, the power minister Mr Aryadan Muhammed has said that the state would face a major crisis if the proposed LNG terminal does not go on stream as scheduled. The state government is paying Rs10.45 for a unit of power from the NTPC plant at Kayamkulam.

If the LNG terminal becomes fully operational, this could be brought down by more than half to Rs 5 or lower, he says.

CRUCIAL INPUTS

The total requirement of power in the state now is 3,400 mw. During the last year, it incurred a cost of Rs 5,500 crore for purchasing its requirement. The total requirement is projected to become 6,000 mw by 2021, Mr Muhammed said.

The proposed 1,050 mw generated from the LNG terminal and the additional generation of 1,950 mw using LNG from Kayamkulam become crucial in this context.

vinson.kurian@thehindu.co.in

Published on July 25, 2012 15:25