The KSEB petition has pointed out that the energy demand and peak demand in the State have been recording an annual increase of eight per cent and this cannot be met with the hydel generation in the State and allocation from the central generating stations alone. This has necessitated depending on internal generation from liquid fuel-based plants such as Kayamkulam combined cycle project, BKPL (Kochi), KPCL (Kasaragod) and Kozhikode diesel power plant.
But, the cost of power from these generating stations ranged between Rs 10.29 and Rs 10.77 an unit. In the circumstances, the board has submitted that the consumers can be permitted to draw the power on marginal cost basis at an average rate of Rs 10.31 an unit for consumption above fixed ceilings for different categories.
For HT, EHT and bulk consumers, the normal rate will be applied to 85 per cent of the average consumption during the previous one year. Similarly, the various groups of LT consumers will be allowed a limit of 85 per cent for normal rate, while the ceiling for the domestic consumers will be 300 units a month. Over and above the limits, the levy will be based on marginal cost principles.