According to sources, the tariff revenue of the board plummeted by Rs 450 crore in the last few months, following the overall dip in energy demand
Thiruvananthapuram: For the first time, the outstanding energy bill arrears of Kerala state electricity board limited, incurred by consumers across the board, has crossed over Rs 900 crore. The low consumption rate and the outstanding arrears have taken a toll on the board, forcing it to borrow Rs 1,000 crore from power financing corporation and Kerala State Financial Corporation.
KSEB was the only power utility in the country that came out with various schemes and subsidies to address complaints that cropped up following unprecedented spike in electricity usage by domestic consumers and significant slump in average consumption by commercial and industrial consumers during the lockdown.
According to sources, the tariff revenue of the board plummeted by Rs 450 crore in the last few months, following the overall dip in energy demand. The poor realization of bills added to its woes. “Energy demand has started to rise and it is a good signal for the board. From the expected average consumption level of 70 mu and above, the same power demand had gone down drastically during the lockdown period. The board has doled out over Rs 175 crore to consumers across the board as part of giving all consumers a financial reprieve during lockdown. However, many consumers have stopped paying electricity bill, causing financial threat to the board. The board had earlier sanctioned time till December for consumers to pay the bills generated during lockdown. However, many are not paying bills generated after the lockdown,” said a senior board official.
“It would be wrong to say that the board is on the cusp of a financial breakdown. We expect the bill payments to pick up very soon. The borrowings the board has made of late are for capital expenditure. With the government expected to pay another tranche of Rs 300 crore on account of KWA dues and a possible sunny season ahead, KSEB would definitely circumvent this phase soon,” said N S Pillai, KSEB chairman and managing director.
Source: energy.economictimes.indiatimes
