With the Kerala State Electricity Board's (KSEB) decision to extend its power purchase agreement (PPA) with BSES Kochi Pvt Ltd (BKPL) kicking up a massive row, the State Electricity Regulatory Commission (SERC) has given KSEB time till November 27 to substantiate its in-principle decision to extend the PPA by two more years.
In the meantime, the commission has allowed the KSEB and BKPL to extend their PPA by one month. The extension - till November 30 - is to allow the KSEB submit the necessary data for substantiating its decision to extend the PPA, the commission stated in an interim order based on the hearing held last week. The payment for this one month period will be decided by the commission later, the order said.
The KSEB decision had run into trouble as the power from the BKPL plant comes at a high price, and the electricity board has been paying it crores of rupees as fixed charges every year.
On its part, the commission wants the KSEB to submit a "detailed appraisal" of the power demand and supply position for 2016 and 2017.
The KSEB officials, at the hearing, had told the commission that while the state was safe electricity-wise for the 2016 summer, 2017 offered a bleak scenario. The KSEB can also, if required, may incorporate mutually agreed tariff in its petition for extending the original petition dated May 3, 1999, the commission said.
At a hearing last week, the KSEB officials had said that the board expects to negotiate the coming summer "comfortably", but summer in 2017 could prove "difficult".
During the 2016 summer, KSEB will have an additional 400 megawatts (MW) in its kitty, but in 2017, there will be a shortage of 150 MW from the current availability.
Source- Indian Express