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Home KSEB KSEBL to move HC against SERC order for determination of tariff

KSEBL to move HC against SERC order for determination of tariff

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High CourtThe Kerala state electricity board Limited will move the high court against the terms and conditions finalized by the state electricity regulatory commission for determining power tariff.

The decision of the power utility to challenge the regulator in a court of law comes in the wake of a favourable judgment it got from the appellate tribunal of electricity on its petition against the commission's denial of actual employee cost projected by it in 2012-13.

The board had, in its petition to the appellate authority, pointed out that the commission did not allow Rs 567.80 crore in the employee cost it claimed for 2012-13. The authority order said the commission had adopted a wrong method to assess the employee cost as it was impossible for the board to unilaterally curtail employee cost and no scientific guidelines were announced to calculate it.

"The commission had calculated the employee cost by taking the manpower cost in 2007-08 as the base. It did not acknowledge the filling up of several vacancies in later years and thus put the board in a fix. Since the terms and conditions recently issued for tariff determination is in the form of a regulation and the employee cost is determined using wrong methodology, the only option left with the board is to seek justice from the high court," said power secretary and KSEB chairman and managing director M Sivasankar.

Board officials said the appellate tribunal order would help the board to recoup from consumers the employee cost cut by the regulator. In that case, the commission is likely to allow the same by imposing additional surcharge on consumers across the board.

Though regulatory commissions in other states too directed power utilities to cut down their employee costs, they were given a five-year period to realize the target.

Source- TOI


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