The Hindu Business Line : Kerala Board not to buy power from NTPC and BSES

In a note submitted to the State Electricity Regulatory Commission (SERC) on its projected aggregate revenue requirement and the expected revenue from charges for 2005-06, the board has stated that the current variable cost of generation from independent power producers (IPPs), including NTPC and BSES, was around Rs 4 per unit.

The board will, however, purchase a marginal 6.92 million units from KPCL-Kasaragod, the only other IPP in the State, to meet peak-hour shortages.

KSEB will avail itself of the entire allocated share from the Central generating stations, including the proposed new additions at Talcher-II and NTPC-Ramagundam.

Consequently, the total allocation from the Central stations will increase from 867 MW currently to 1,042.9 MW in 2005-06.

The total cost of power purchase is estimated at Rs 1,492.7 crore during the year, taking into account the contractual commitments on fixed costs, the current trend of variable costs and wheeling charges, according to the note.

The board, anticipating average monsoon, has targeted hydel generation of 6,230 million units (MUs) from the existing stations in the State in 2005-06.

Also, it expects to commission Malankara (65 MU) and Kuttiadi Augmentation (223 MU) hydel projects before the beginning of the next monsoon, which will take the total hydel generation target to 6,518 MU for the year.

The generation from KSEB thermal plants, namely BDPP and KDPP, is proposed for peak load assistance and increased system reliability. The targeted generation from the two plants is 120.33 MU in 2005-06. The total estimated cost for internal generation is Rs 55.86 crore during the year, which includes only the fuel costs for thermal plants and variable costs such as luboil and other consumables for the hydel plants.

The projected aggregate revenue requirement for the year, including all expenses and statutory surplus, is Rs 3,826.97 crore. The projected total revenue from charges is Rs 3,334.72 crore. This will leave a revenue gap of Rs 492.25 crore in 2005-06.

The board will take up the matter of revenue gap with the Government and obtain the latter's direction on bridging the gap.

It will submit the proposal for bridging the revenue gap separately to SERC after getting the directions from the Government.