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The new laws notified by the Central Electricity Regulatory Commission (CERC) for interstate energy transmission prices payable by the States can have severe monetary implications for Kerala, officers of the Kerala State Electricity Board (KSEB) have stated.
Under the CERC (Sharing of Interstate Transmission System Charges and Losses) Regulations, 2020 — to be efficient from November 1 — the costs payable by the State is prone to shoot as much as round ₹1,500 crore per yr. At current, it involves roughly ₹550 crore.
Ultimately, this extra monetary burden will mirror within the energy tariffs for the reason that burden might be handed on to customers. It is estimated that the tariff can go up by 50 paise per unit, says an official.
In the meantime, the KSEB is planning to problem the laws within the High Court. “We have already informed the CERC and the Union Power Ministry of the State’s apprehensions regarding the proposed regulations,” KSEB Chairman and Managing Director N.S. Pillai stated.
States resembling Tamil Nadu, Odisha, and West Bengal are also prone to expertise a hike in transmission prices, whereas it can considerably dip for a number of different States.
The motive is that the brand new laws search to alter the way during which the costs for underutilised interstate transmission traces are calculated. “Many interstate lines constructed in recent years by Power Grid Corporation Ltd (PGCIL) remain underutilised. The utilisation of many high-capacity transmission lines is below 30%. At present, the entire charges for these lines are borne by States through which these lines pass through, as they are the ones who use them,” says one other official.
Originally constructed to allow export of energy by giant personal sector energy technology initiatives, the traces had been later relinquished by the businesses once they had been unable to seek out consumers for their energy or the initiatives themselves weren’t accomplished on time.
About 34,000 MW of transmission capability has to this point been relinquished by personal producing corporations out of the 83,000 MW allotted by the PGCIL, in keeping with the officers.
“The CERC issued the new regulations after those States currently burdened by the underutilised lines lodged complaints. However, instead of taking steps to realise the relinquishment charges from the private power generation companies, the CERC is shifting the burden from existing user States to States such as Kerala,” they are saying.
The new laws additionally contradict the tariff coverage which require transmission prices to be calculated on the idea of utilization. Under the brand new laws, nonetheless, the costs are segregated into ‘usage’ and ‘balance’ elements. The utilization part involves solely 22% of whole prices. The stability part of 78% is distributed among the many States no matter whether or not they’re utilizing the traces or not, they are saying.
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