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Home News Power Sector News Kerala govt withdraw subsidy - power tariff will be increased

Kerala govt withdraw subsidy - power tariff will be increased

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No subsidyThe Kerala state government has decided do away with the power subsidy it had extended to consumers using 40 to 120 units of power a month from May 15, 2013. The government, while announcing the subsidy to a large section of consumers, had said that it would review the situation after three months and would take an appropriate decision on whether the subsidy would be continued.

Now it has directed Kerala State Electricity Board to lift the subsidy from August 1. Despite strong protest from the board, the government had protected this category of consumers from the power tariff hike in 2012 as well, but failed to adhere to the terms and conditions for giving cross subsidy to a section of consumers.

As per the Electricity Act, if the government wants to give subsidy to any section of consumers, the amount should be paid to the board in advance. But, the government has not released a single penny to KSEB for sparing this category from tariff hike.

As part of the subsidy announcement in 2012, the state government was supposed to release Rs 25 crore a month to the board. With the second subsidy announcement in May 2013, the total monthly financial obligation of the government to the board increased to Rs 35 crore a month. Sources said the government has not paid the subsidy amount announced three months ago. Of the subsidy announced in 2012, the board received only Rs 75 crore from the government.

The subsidy cover extended to consumers using power between 40 to 120 units a month in 2012 will continue. According to board chairman M Sivasankar, the government dues to the board on account of power subsidy has crossed Rs 500 crore.According to KSEB sources, the number of domestic consumers using up to 120 units of power a month comes around 70 lakhs, while the total number of domestic consumers in the state is just above 85 lakhs. In 2012, the power tariff hike was 30 per cent and in 2013, the same was 12 per cent.

Thiruvananthapuram: The state government has decided do away with the power subsidy it extended to consumers using 40 to 120 units of power a month from May 15, 2013. The government while announcing the subsidy a large section consumers had said that it would review the situation after three months and would take an appropriate decision on whether the subsidy to be continued or not beyond the said period.

However, the government directed Kerala State Electricity Board to lift the subsidy cover with effect from August 1. Despite strong protest from the board, the state government had given protection to the same category of consumers from the power tariff hike in 2012 as well, but failed to adhere to the terms and conditions for giving cross subsidy to a section of consumers .

As per the electricity act and direction from the electricity regulatory commission, if the government wants to give subsidy to any section of consumers from tariff hike, the subsidy amount should be paid to the board in advance. But, the government has not released a single penny to the KSEB for leaving a large number of consumers from the hooks of latest tariff hike.

As part of the subsidy announcement in 2012, the state government was supposed to release Rs 25 crore a month to the board. With the second subsidy announcement in May, 2013, the total monthly financial obligation of the government to the board increased to Rs 35 crore a month. According to sources in the board, the government has not released a single penny to the board to meet the subsidy announced three months ago. Of the subsidy announced in 2012, the board received only Rs 75 crore from the government.

Though state government decided against the continuance of the subsidy announced in May, 2013, the subsidy cover it extended in 2012 to consumers using power between 40 to 120 units a month will continue. According to board chairman M Sivasankar, the government dues to the board on account of power subsidy has crossed Rs 500 crore.

According to KSEB sources, the number of domestic consumers using up to 120 units of power a month comes around 70 lakhs, while the total number of domestic consumers in the state is just above 85 lakhs. In 2012, the power tariff hike was 30 per cent and in 2013, the same was 12 per cent.

Source- TOI

 

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