Hefty rise in power tariffs baffles Keralites

Kochi: The Kerala state government has announced a hefty increase in power tariffs for domestic consumers, besides a surcharge of 50 paise a unit for all categories of consumers.

Electricity bills for domestic consumers will go up by anything between 44 and 137 per cent with effect from 30 August 2002. The state cabinet took the decision to increase the power tariffs on the basis of a revised proposal drawn up by Kerala Electricity Minister K Sivadasan.

The industrial and commercial establishments have been spared of a hike except for the surcharge. Though the current rates for power consumed in different slabs by domestic consumers will remain the same, about Rs 35 crore has been proposed to be netted from them through rationalisation of the tariff structure.

Accordingly, a consumer in a higher slab will have to pay for the entire consumption at the rates applicable to the higher slab. Earlier, a part of consumption falling in lower slabs were paid for only at the rates applicable to those slabs.

The first two slabs have been spared of the increase other than the surcharge. Accordingly, those consuming up to 40 units a month will have to pay at the rate of just 90 paise per unit, plus the surcharge of 50 paise per unit. Rationalisation will not apply to the next slab (41 to 80). So, consumers will pay at 90 paise per unit for the first 40 units and 140 paise per unit for the additional units along with the surcharge.

If consumption exceeds 80 units, higher rates will apply for the entire consumption. The rates will be Rs 1.65 a unit for consumption of up to 120 units plus surcharge. The other unit rates are Rs 2 for 121 to 150 units, Rs 2.65 for 151 to 200 units, Rs 3.30 for 201 to 300 units and Rs 4.30 for 301 to 500 units.

The rate will be Rs 4.45 a unit if the consumption exceeds 500 units. Surcharge will have to be paid additionally in all cases. No surcharge will apply to consumers using up to 15 units who are getting the supply free.

Kerala Chief Minister A K Antony said in a recent press conference that a tariff hike cannot be avoided as inflow in the reservoirs this monsoon was only half that of the corresponding period last year. The Kerala State Electricity Board is incurring an additional burden of Rs 82 crore a month for buying additional power from thermal stations.

This had increased its losses to Rs 182 crore a month. The tariff hike will fetch Rs 70 crore a month, half of which will be from the surcharge, he said. The surcharge will be withdrawn if there is good inflow during the coming monsoon, but load-shedding will continue.

Antony said steps are being taken to improve the functioning of KSEB. About 150 mini-hydel projects will be built with private sector participation. A high-power committee headed by the chief secretary will oversee KSEB reforms. The power secretary will be its convenor. The KSEB chairman and principal secretaries for finance and industries will be its members.

Sivadasan says KSEB is taking measures to recover Rs 256 crore due from various private consumers. Power supply to them will be cut in a week if there is no court stay. While 46 per cent of the supply goes to domestic consumers, the revenue from them is only 21 per cent. The rationalisation of the tariff structure will remove this anomaly to some extent. A law will be brought to check power thefts.