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KERALA STATE ELECTRICITY REGULATORY COMMISSION THIRUVANANTHAPURAM 695 003 - page 12 / 14

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is especially so, since the industrial consumption in the State is gradually coming down. The Commission firmly believes that it is impossible to sustain power development without industrial development.

In determining the rate for surcharge, the Commission has to ensure that there is no immediate financial loss to KSEB. In order to avoid financial loss to KSEB, it has to be compensated for the difference between the average tariff for Indal i.e. Rs. 3.38/kWh and the overall average realization of Rs 2.96/kWh for the energy supplied by KSEB. After taking into account the transmission charges and compensation for transmission losses as worked out above, it is felt that a levy of Ps 25/kWh towards surcharge would satisfy the above requirement.

3.8

The Commission considered the request of the KSEB for an additional surcharge

of Rs 2 crores/month. As per the provisions of the Electricity Act, 2003, this surcharge is meant to meet the fixed cost of the licensee arising out of its obligation to supply. Since Indal has been an industrial consumer even before the constitution of the KSEB, the Commission finds no justification in calling upon the Company to pay any surcharge arising out of the Board's obligation to supply. Payment against commitment charges to Independent Power Producers has also no relevance under the power shortage conditions. The Commission is therefore not in a position to accept the request of the KSEB for the

levy of additional surcharge on Indal.

  • 4.

    Commission's decision:

    • 4.1

      In view of the foregoing discussion, the Commission in accordance with the provisions of Subsection 2(d)(ii) of Section 39 and Subsection(2) of Section 42 of the Electricity Act, 2003 seeks to allow open access to Indal for import of 30MW of power using the transmission system of KSEB on an experimental basis.

4.2

Transmission charges:

Indal shall pay a composite transmission charge @ Ps 10/kWh to the KSEB for the energy delivered at Indal, Alupuram, which includes charges for accommodating minor instant to instant variations in power drawal, SLDC charges, RLDC charges (if any), accounting charges, etc.

4.3

Transmission Losses:

Indal shall compensate the KSEB for transmission losses at 3% of the energy injected into the KSEB system for transmission to Indal, Alupuram. This would mean that for every 100 units of energy injected into the KSEB system, KSEB would be liable to deliver 97units at Indal, Alupuram.

4.4

Surcharge on transmission charges:

Indal shall pay to KSEB a surcharge on the transmission charges @ Ps 25/kWh

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