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KSEB gets mandate to clamp 25% power cut

Economy Bureau

Posted: 2008-07-25 02:27:44+05:30 IST
Updated: Jul 25, 2008 at 0227 hrs IST

Thiruvananthapuram, Jul 24 : The Kerala Electricity Tariff Regulatory Commission has decided to allow Kerala State Electricity Board (KSEB) to clamp 25% power cut on industry, following public hearing. This will impact high tension, extra high tension (HT, EHT) power consumers.

However, the commission is yet to decide on the thermal surcharge on HT and EHT consumers that KSEB has sought. Public hearing on this issue is scheduled on August 2 and August 4, commission sources told FE.

At the same time, even when the proposed thermal surcharge is added, the average unit cost of power will be among the cheapest in the country, claims Kerala power minister AK Balan.

The proposed thermal surcharge is as follows: 50 paise per unit for those using 81 to 300 units and Rs 1 per unit for those using above 300 units.

Industrial consumers are hardly amused. The HT/EHT Industrial Electricity Consumers Association has warned that if power cut is slapped, it has to be periodically reviewed and lifted at the earliest.

Technopark in Thiruvanthapuram, housing 120 companies (most with 24/7 global business activities), has sought exemption from the proposed power cut. At least temporarily, companies may have to suspend business development activities, if power is tightbelted, KV Rajendran, GM (technical ), Technopark, said.

Equally upset is Cochin Special Economic Zone (CSEZ). The SEZ has represented to the commission that it was set up on State government's assurance of 'no power cut'. Cochin Port Trust (CPT) and Fertilisers and Chemicals Travancore (FACT) have also sought exemption from power cut.

The board has clarified the present shortage of hydel power, due to scanty monsoon rains, could cause Rs 2548.49 crore liability. Hydel power demands only 85 paise in production costs. The variable costs for buying power from coal and diesel stations come to Rs 8.79 per unit. Power from naphtha is priced as high as Rs 11.50 per unit. The KSEB had submitted that the half-hour loadshedding currently in force in Kerala, was not enough to tide over the bad patch.

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