Soaring tariff may impact plans to tide over deficit

Tariff fluctuations and soaring demand in the power market are likely to impact the Kerala State Electricity Board’s plans to source power from exchanges to overcome the deficit gripping the State.

Power Department sources said the cost of power per unit was expected to touch ₹9 by Monday evening and it may escalate further in the wake of a spurt in demand in the power exchanges, which meant the board would have to shell out a fortune to draw power from the exchanges to address the shortage due to fall in generation from its own stations damaged by the floods. The power drawn for ₹9 was being sold at an average rate of ₹2.5 a unit.

Spurt in demand

The post-flood rise in mercury levels had started reflecting on the daily demand too. From 38 million units recorded on August 15 and 16, the consumption rate had peaked to 68 million units and this may go up in the coming days, the sources said.

The board was now planning to secure power from the quota that certain utilities did not avail themselves of from the central generating stations to meet the shortfall. But this may not suffice to meet the growth in daily demand.

No official discussions had begun for enhancing the generating capacity to meet the demand. Informal discussions were on for developing a second phase of Idukki project and also for Sabarigiri.

Permission of the Kerala State Electricity Regulatory Commission was imperative for any investment above ₹10 crore.

The cost for generating 10 MW had been pegged at about ₹10 crore.

The board would have to complete a slew of procedures before settling down for a long-term major investment, maybe for a new project or the second phase of any existing project. In the face of stiff public resistance against new schemes, including Athirapilly, expansion was the only option in hand.