Today Er. C P George presented the views of KSEBEA ( a non political association).
Please find the discussion attached.
KSERC (Terms and Conditions for Determination of Tariff) Regulations, 2018.
Congratulating KSERC for the notification of the regulation.
We may point out the many norms adopted for bench marking the performance including auxiliary consumptions, NAPAF etc of Generation are not realistic and shall have large deviations with respect to the actuals.
It is observed that the nature of the stressed assets, the extended life of the lines, plants & machinery, transformers etc. are not considered while deciding the norms.
Hence, we request Honourable commission to show adequate flexibility to accommodate the changes in the base line provided consequent to the installation of the appropriate metering infrastructure and on presentation of actual data during truing up.
Tariff petition hearing - KSEBEA views
Moderator: kunjunnips
Tariff petition hearing - KSEBEA views
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george.prothasis
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Re: Tariff petition hearing - KSEBEA views
There were great objections against increasing the fixed charges and many are arguing about the Open Access becoming non profitable.
If KSEBL need to work under commercial principles, it need to get the investment costs ( the loan cost & depreciation) along with non variable charges like employee cost, R&M cost and Administrative cost. Even if some one not consuming a single unit of energy,the amount invested for the infrastructure and supply of electricity along with expense for maintaining the same remains same. And same is to be collected from the consumers using the infrastructure based on the capacity they are being utilised. If not, the amount need to be shared by those not using the infrastructure at the same rate as those being extensively used. Now the open access consumers are getting benefited at the cost of other consumers due to the lower fixed charge. The low cost of energy in the power market is just because of the fact that LTA & MTA executed by the licensee with the generators are envisaged to take care of the investment cost and O & M cost of the generators for operating the plant at least at technical minimum. Any extra unit sold through the market is extra profit without concern about the operating cost. Thus, the real time market has become competitive for generators without risk and afford to sell electricity at lower cost. Same is the case with infirm power from wind and solar. It is an opportunity and harnessing the maximum during the available time is envisaged. All these results in lower tariff during the day time and off-peak time. But with the higher demand during peak hours, there shall not any excess power with the generators and end up at higher costs. If the consumers who are using the system to the maximum extent do not share the fixed charges out of infrastructure development and the fixed charges being paid to the generators as per their demand, the burden will be passed on to the poor consumers who are not using the system proportional to their demand
If KSEBL need to work under commercial principles, it need to get the investment costs ( the loan cost & depreciation) along with non variable charges like employee cost, R&M cost and Administrative cost. Even if some one not consuming a single unit of energy,the amount invested for the infrastructure and supply of electricity along with expense for maintaining the same remains same. And same is to be collected from the consumers using the infrastructure based on the capacity they are being utilised. If not, the amount need to be shared by those not using the infrastructure at the same rate as those being extensively used. Now the open access consumers are getting benefited at the cost of other consumers due to the lower fixed charge. The low cost of energy in the power market is just because of the fact that LTA & MTA executed by the licensee with the generators are envisaged to take care of the investment cost and O & M cost of the generators for operating the plant at least at technical minimum. Any extra unit sold through the market is extra profit without concern about the operating cost. Thus, the real time market has become competitive for generators without risk and afford to sell electricity at lower cost. Same is the case with infirm power from wind and solar. It is an opportunity and harnessing the maximum during the available time is envisaged. All these results in lower tariff during the day time and off-peak time. But with the higher demand during peak hours, there shall not any excess power with the generators and end up at higher costs. If the consumers who are using the system to the maximum extent do not share the fixed charges out of infrastructure development and the fixed charges being paid to the generators as per their demand, the burden will be passed on to the poor consumers who are not using the system proportional to their demand
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ntjobneelamkavil
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- Joined: Sun Nov 11, 2018 7:53 pm
Re: Tariff petition hearing - KSEBEA views
As per ARR&ERC submitted by board ,it is mentioned that KSEB issued two series of Bonds amounting to 8177 crores.this statement in the petition is really surprising, Every one in KSEB is aware that KSEB never released any bonds for pension,other point KSEB is demanding interest for this virtual bonds for meeting pension liabilities, then how commission will allow amount as interest for this illatha Bondinu,this will create problems in meeting the pension liabilities.