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KERALA STATE ELECTRICITY REGULATORY COMMISSION THIRUVANANTHAPURAM 695 003 - page 6 / 14

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The representatives of the KSE Board stated that considering the power

entitlement of KSEB in the Central Sector Stations and also the contracted power from other sources outside the State, the total power import in the immediate future would be of the order of 1170 MW. The existing transmission capacity would not be adequate to facilitate import of this quantum of power. The 400/220 kV transformer capacity at Madakkathara also imposed a constraint on import of additional power. However, since the requirement of Indal was only of the order of 30 MW, the Board would not raise any

objection for permitting this import by Indal.

As regards charges for transmitting power to Indal using the transmission system of KSEB, the representatives of KSEB stated that as the actual power flow would take place through displacement in an interconnecting network, the transmission charges were necessarily to be worked out on the basis of the pooled cost of transmission in the State. However, as the valuation of assets and other costs relating to the transmission profit centre of the Board had not been worked out separately, it was not possible to arrive at the appropriate value for the transmission/wheeling charges, on this basis. Pending calculation of the transmission tariff on pooled cost basis, the Board would opt for deciding the transmission tariff on the basis of transmission charges paid by the Board to POWERGRID for Kayamkulam transmission system, as this transmission system formed an integral part of the overall transmission system in the State. Presently the charges for

Kayamkulam transmission system worked out to Ps 35/kWh. The pleaded that the transmission charges for usage of KSEB's transmission should be fixed at Ps 35/kWh.

Board therefore system by Indal

As regards losses in the transmission system, the Board's representatives stated that presently the average transmission losses at EHT level worked out to 7.1% and allowing for incremental losses for transmission of additional power of 30 MW, the losses would work out to 8% and therefore the power transfer to Indal should provide for transmission loss of 8%. On a query from the Commission, the Board's representatives stated that this included also the losses in the 66 kV system.

The Board's representatives further stated that the Board was entitled for a surcharge based on the difference between tariff for Indal and average realization by the Board. The average charges for Indal worked out to Rs 3.36/kWh including electricity duty of Ps 1/kWh and surcharge of Ps 2.5/kWh. As the average realization was Rs 2.96/kWh, it was argued that the Board was entitled for a surcharge of Ps 40/kWh. It was also argued that the Indal should also pay an additional surcharge of Rs 2 crores per

month

towards

the

liability

independent power producers.

of the Board by way of The representatives of the

fixed Board

charges to be paid to further stated that in the

event of failure of power supply from PTC, if Indal desired to it should be liable to pay Rs 2 crores per month as grid support normal supply tariff of the KSEB.

avail supply from KSEB, charges in addition to the

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