Thiruvananthapuram: Not just calamity cess, the upcoming basic election seems to have brought about the authorities concerned to position on hold the announcement of fresh energy tariff hike.
According to assets, the Kerala State Electricity Regulatory Commission (KSERC) is not going to announce before basic elections the new energy tariff revision because it has didn't obtain green sign from the state executive. “KSERC is able with the new energy tariff file. But, it doesn’t need to announce the same with out the consent of the state executive. Since the federal government is of the view that a energy tariff hike at this level of time would be a foul idea, the announcement may be not on time further. Though the fee is considered an independent institution, they usually wont choose to move towards the wishes of the federal government in administrative center,” assets said.
KSEB had sought round 9% increase in the energy tariff price for the first two years of regulate period (2018-19-2019-2020) and additional 5% increase in second regulate period (2020-21, 2021-2022). It’s for the first time that the multi-year tariff is being rolled out for the four years in combination. The fee had finalized the modalities for the tariff revision and the KSEB had filed its tariff petition by the tip of October final. It was once expected that the fee would announce the revision no less than by January. Sources said the fee has resolved to sanction round 6% increase in the tariff.
“The KSEB filed the tariff petition by October final in 2018 as the fee finalized the tips best by the same month. The prolong in tariff announcement would badly impact the budget of the board, the affect of which would naturally get handed to consumers in the coming years. The new tariff should have come into effect on April 1, 2018. Now, the new tariff could no longer be accrued with retrospective effect. But it would replicate in the tariff petitions the board submitting in long run. In reality, it was once such delays that wrecked the financial stability of KSEB. Such oversights previously had ended in accumulating financial burden of Rs 5,500 crore previously seven years. Had it no longer been for recuperating such quantity, the KSEB don't have even required to seek tariff revision of this magnitude,” said a KSEB official.
Subsequent to the prolong in tariff revision, the credit rating agencies would all prone to downgrade KSEB’s credit score scores, which would further tighten the application’s financial position and borrowing capability.
According to assets, the Kerala State Electricity Regulatory Commission (KSERC) is not going to announce before basic elections the new energy tariff revision because it has didn't obtain green sign from the state executive. “KSERC is able with the new energy tariff file. But, it doesn’t need to announce the same with out the consent of the state executive. Since the federal government is of the view that a energy tariff hike at this level of time would be a foul idea, the announcement may be not on time further. Though the fee is considered an independent institution, they usually wont choose to move towards the wishes of the federal government in administrative center,” assets said.
KSEB had sought round 9% increase in the energy tariff price for the first two years of regulate period (2018-19-2019-2020) and additional 5% increase in second regulate period (2020-21, 2021-2022). It’s for the first time that the multi-year tariff is being rolled out for the four years in combination. The fee had finalized the modalities for the tariff revision and the KSEB had filed its tariff petition by the tip of October final. It was once expected that the fee would announce the revision no less than by January. Sources said the fee has resolved to sanction round 6% increase in the tariff.
“The KSEB filed the tariff petition by October final in 2018 as the fee finalized the tips best by the same month. The prolong in tariff announcement would badly impact the budget of the board, the affect of which would naturally get handed to consumers in the coming years. The new tariff should have come into effect on April 1, 2018. Now, the new tariff could no longer be accrued with retrospective effect. But it would replicate in the tariff petitions the board submitting in long run. In reality, it was once such delays that wrecked the financial stability of KSEB. Such oversights previously had ended in accumulating financial burden of Rs 5,500 crore previously seven years. Had it no longer been for recuperating such quantity, the KSEB don't have even required to seek tariff revision of this magnitude,” said a KSEB official.
Subsequent to the prolong in tariff revision, the credit rating agencies would all prone to downgrade KSEB’s credit score scores, which would further tighten the application’s financial position and borrowing capability.
LS poll may further delay power tariff hike
![LS poll may further delay power tariff hike]()
Reviewed by Kailash
on
February 09, 2019
Rating:
