KSEB says it faces a loss of 11 paise on every unit of electricity sold, as it fulfills its responsibility to society by providing low-cost electricity to weaker sections and farmers .
Amid speculation over the revised electricity tariffs, the Kerala State Electricity Board (KSEB) issued a statement on the precarious state of its finances.
The KSEB said it faces a loss of 11 paise on every unit of electricity sold, as it fulfills its responsibility to the company by providing low-cost electricity to weaker sections and farmers. The daily loss on this account amounts to ₹ 71.5 lakh, according to the electric utility.
Citing audit figures for 2019-2020, the KSEB set its net loss at 12,104 crore. Although the Kerala State Electricity Regulatory Commission (KSERC) recognized a revenue shortfall of 6,862 crore, KSEB was not allowed to fully recover it through its tariffs.
On another front, the arrears on electricity bills owed to KSEB amounted to 3,200 crore. Of this total, government departments / agencies accounted for 1,200 crore. The Kerala Water Authority (KWA) alone owes ₹ 817 crore, the KSEB said.
The KSEB stressed that current speculation about the tariff revision was without merit. KSERC, through the KSERC (Terms and Conditions for Tariff Determination) Regulation, 2021 issued on November 11, ordered KSEB to submit Aggregate Revenue Requirements (ARR) and tariff proposals by December 31. . KSERC will finalize a decision only. after holding public hearings and making necessary revisions, according to the KSEB.
The KSEB recalled that the State was facing a shortage of 100 to 300 MW during peak evening consumption hours. The deficit was made up by purchases from electricity exchanges to avoid load shedding and power cuts. The electricity company has requested the cooperation of the public to reduce its consumption in the evening.