Categories: Thiruvananthapuram

Kerala Serc Problems with Rate Regulation Draft

Thiruvananthapuram: The State Electricity Regulatory Commission (SERC) has proposed changes to reach the electricity sector in the draft report of the tariff regulations.
Among other things, the design of the report puts pressure to reduce cross subsidies and propose steps to isolate consumers from losses, if any, which is issued by the power utility if you run other businesses.
The guidance design published by the Commission has proposed a mechanism for sharing profits or losses incurred by the power utility on the account of the factor that can be controlled.
In the case of the aggregate gain of the plant / transmission / distribution business, the utility should transfer “half of the total profits to consumers as a rebate in tariffs.
However, aggregate losses as approved by the Commission will not be forwarded to consumers in any way” according to the draft, The Commission can enable license holders to sell surplus energy, if any, to consumers instead of selling open markets or electrical exchanges.
Excess power must be available for consumers open access at prices on the power exchange on the block of each day.
The license receiver must announce the amount of surplus energy available in advance through their website or the appropriate means to allow consumers to access open to express the same interest.
Whereas distribution / licensing businesses involved in other businesses for optimal utilization of their electrical business assets, the same amount as half of the income from other businesses, after deducting all direct and indirect costs associated with the other business, will be deducted from needs Aggregate income from distribution / license holder business.
“Where the total number of direct and indirect costs of other businesses, exceeding revenue from other businesses, the distribution license holder must submit a request before the commission clearly shows the nature of the business, income, reasons, reasons, the reason for the shortcomings, steps Taken / proposed to be taken to overcome the situation and look for instructions from the commission in this regard.
However, there is no amount that must be added to the aggregate income requirements of the distribution / license holder business because of the other business, “set a draft.

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