• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Indrani Dutta

KOLKATA, Dec. 18

CESC Ltd, the RPG-controlled power utility, will begin reworking its accounts on the basis of the rates announced by the West Bengal Electricity Regulatory Commission (WBERC).

High-level CESC sources told Business Line that this exercise was likely to be taken up after the annual general meeting of the company scheduled to be held on December 20. The AGM, which would be CESC's first where no accounts would be placed before the shareholders, will deal with only some ordinary business before being adjourned.

The WBERC has also allowed CESC to file its petition from the current fiscal year and the next by December 2002, commission sources said.

The company which has been awaiting the tariff announcement has not been able to close its account although it has been raising bills since the June billing month on the basis of the High Court order of May. Although the present order at Rs 3.81 per unit for 2000-01 (against Rs 3.96 given by the court), and Rs 3.9 for 2001-02 (against Rs 4) is only slightly lower than the High Court prescribed rates, CESC would now have to rework its entire cash-flow position, sources point out.

However, it is indicated that CESC would adopt a wait-and-watch attitude regarding the recasting of its tariff structure in view of the single tariff rate recommended by the WBERC, in place of the seven-stage rate structure which had slabs for almost every stage.

CESC sources said that they would need at least a month to develop the software for the new system. WBERC, which has pegged CESC's revenue requirement for these two years at Rs 4,099 crore, has said that the utility would be able to charge the new rates from the February billing month.

While most of the political parties including the ruling Left Front have thrown their weight behind a growing protest over the removal of the cross-subsidy, the Government seems determined to block the move. One of the political parties has given a bandh call on January 27 and the CPM is organising road blocks at various points in the city.

CESC, which serves the city and its industrial suburbs, has a consumer base of over 17 lakhs. Of this, around nine lakh consume less than 100 units and are expected to be hit hard by the order.

A little over three lakh comsumers fall in the commercial and industrial category, who, along with the high-end domestic consumers, would benefit and perhaps get refunds. CESC has been told to begin making adjustments in 34 equal instalments from April next.

While CESC was quick to calculate the new rates on the basis of the High Court order on May, it feels that it would take some time now, since a new system would have to be put in place. The cash-strapped company whose accumulated losses stood at around Rs 700 crore as on March 31, 2002, is now trying to rework its bottomline in view of this order.

Send this article to Friends by E-Mail
Comment on this article to BLFeedback@thehindu.co.in

Stories in this Section
The Indigo is Rs 4.35 lakh

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line