Thiruvananthapuram: The Central Electricity Regulatory Commission (CERC) has notified three-fold increase in the charges applicable for inter-state power transmission. This would add to the financial burden of Kerala and would result in an additional liability of Rs 1000 crore per year on state. The transmission charges will increase from Rs 550 crore to Rs 1500 crore.
The new rates will come into force from November 1. The additional charges will be collected from the consumers. According to Kerala State Electricity Board (KSEB) officials, the hike will result in increasing the electricity cost by at least 50 paise per unit.
They also alleged that the increase in inter-state transmission charges, is to transfer the loss incurred by the central government on the unused power lines installed by Power Grid Corporation for private power generation companies. KSEB officials added that they have decided to move the High Court against CERC’s decision.
Earlier, the inter-state transmission charges were borne by the states through which the power lines pass. Irrespective of whether the states use the power to 100 percent of the line’s capacity, the states had to share the charges in proportion to usage.
But as per the new guideline, the charges of underutilized power lines also should be paid by states whether they use it or not. Kerala is using almost 100 percent of all the lines passing through the state. This charge is being paid. But in case of many other states, the lines are underutilized. However, the brunt of it will also fall upon the state with the new regulation.
