Electricity Tariff Hike in Kerala

Some days back, I tried to through some light on long term sustainability of KSEB in wake of increased dependence on thermal power. Compared to hydel power generation from old power stations, thermal power is costly. Moreover, nearest central power utility of super thermal capacity is in Andhra Pradesh and hence KSEB will have to bear the expenses for power transportation from the generating station till Kerala (Wheeling Charges). Yesterday, there was a news item confirming the salvage action. All domestic consumers who uses more than 200 Units (KWh) will have to pay at the rate of Rs. 7.85 /- for consumption above that limit. Now I am kind of taken aback. I think this is on the higher side. As indicated in the earlier blog, the selling cost of power for a pit head (Near Coal Mine) power station will be less than Rs. 3/-. The wheeling charges will not come to that much. Considering that all interstate power lines are either Extra High Voltage or better still High Voltage Direct Current, the transmission losses are minimal. May be KSEB wants to make good its earlier losses! Hope wisdom will prevail and Government of Kerala as well as the tariff commission / Regulatory authority will tone down the tariff hike to some reasonable limits.