THIRUVANANTHAPURAM: Kerala state electricity regulatory commission (SERC) has proposed far-reaching changes in the power sector in its draft report on determination of tariff regulations. Among other things, the draft report gives stress to bring down the cross subsidy and proposed measures to insulate consumers from the loss, if any, incurred by the power utility in the event of it running any other business.
The draft guidelines published by the commission has proposed a mechanism for sharing of gains or losses incurred by the power utility on account of controllable factors. In case of the aggregate gain from generating/transmission/distribution business, the utility is supposed to transfer “one-half of the amount of such gain to the consumers as rebate in the tariff. However, the aggregate loss as approved by the commission shall not be passed on to the consumers in any manner”
According to the draft, the commission may allow the licensee to sell the surplus energy, if any, to its consumers instead of selling in the open market or power exchanges. The excess power shall be available to its open access consumers at a price existing in the power exchange at the respective time block of the day. The licensee will have to announce the quantity of surplus energy available in advance through their website or any appropriate means so as to enable the open access consumers to express interest for the purchase of the same.
Whereas the distribution business/licensee engaged in any other business for optimum utilization of the assets of its electricity business, an amount equal to one-half of the revenue from such other business, after deduction of all the direct and indirect costs attributed to such other business, shall be deducted from the aggregate revenue requirement of the distribution business/ licensee.
“Where the sum total of the direct and indirect costs of such other business, exceeds the revenue from such other business, the distribution licensee shall file a petition before the commission clearly indicating the nature of business, its income and its sources, expenses, reasons for shortfall along with measures taken/ proposed to be taken to overcome the situation and seeking directions from the commission in this regard. No amount, however, shall be allowed to be added to the aggregate revenue requirement of the distribution business/licensee on account of such other business,” stipulates the draft.
