CHAPTER 7 ENERGY DEVELOPMENT National Scenario Energy is a basic requirement for all facets of our life, it is also a basic human need and is a critical infrastructure on which the Socio – economic development of the country relies. Colonial India got little attention and less benefit; fossil fuels such as petrol were scarce and expensive for people. In 1947, the nation's electricity supply came from a sparse collection of stations with a total installed capacity of 1360 MW. During the tenth five year plan, 41,000 MW of the new capacity was to have come up; but merely half that target was achieved, leaving the national grid about10 percent short of capacity. Census 2001 found that over 72 percent of households in the country used firewood, cowdung or farm waste to cook, leaving their kitchens smoky and unhealthy. Only 33 million had recourse to liquefied petroleum gas, the clean fuel. 7.2 India's hydroelectric potential is estimated to be 84000 MW. At present, generation capacity is about 34,680 MW. If India can achieve the full potential of 84000 MW; it will generate about 400 million kwh, two percent of the desired total energy supply. 7.3 On the other side, India has abundant and cheap coal reserves and coal accounts for 53 percent of the present commercial energy supply. Therefore, coal remains to dominate the energy mix. 7.4 The nuclear power is a clean and non-polluting energy. In India, total installed capacity of the nuclear power is about 4120 MW, which contributes 3 percentage of the total installed capacity in India. 7.5 Total Installed Capacity of the Power Sector in India as on 30.11.2007 is depicted in the Table 7.1 Table 7.1 Total Installed Capacity in India Source: Ministry of Power: Government of India 7.6 The installed power generation capacity in the country has increased from 124271.97 MW as on 31.5.2006 to 138251.63 MW as on 30.11.2007. The capacity addition during the period was 13979.66 MW. Out of total Installed capacity of 138251.63 MW, a major chunk of the installed capacity in the power sector was from State sector. The contribution was 72,231.82 MW. This formed 52.3 percentage. Contribution of each sector to the national grid as on 30.11.2007 is shown in the table 7. 2. Sl.No. Fuel MW Percentage 1 Thermal (a) Coal (b) Gas (c) Oil 73492.38 14581.71 1201.75 53.2 10.1 0.9 2 Hydro 34,680.76 25.2 3 Nuclear 4120.00 3.1 4 Renewable 10175.03 7.5 Total 138251.63 100
Transcript
CHAPTER 7
ENERGY DEVELOPMENT
National Scenario Energy is a basic requirement for all facets of our life, it is also a basic human need and is a critical infrastructure on which the Socio – economic development of the country relies. Colonial India got little attention and less benefit; fossil fuels such as petrol were scarce and expensive for people. In 1947, the nation's electricity supply came from a sparse collection of stations with a total installed capacity of 1360 MW. During the tenth five year plan, 41,000 MW of the new capacity was to have come up; but merely half that target was achieved, leaving the national grid about10 percent short of capacity. Census 2001 found that over 72 percent of households in the country used firewood, cowdung or farm waste to cook, leaving their kitchens smoky and unhealthy. Only 33 million had recourse to liquefied petroleum gas, the clean fuel. 7.2 India's hydroelectric potential is estimated to be 84000 MW. At present, generation capacity is about 34,680 MW. If India can achieve the full potential of 84000 MW; it will generate about 400 million kwh, two percent of the desired total energy supply. 7.3 On the other side, India has abundant and cheap coal reserves and coal accounts for 53 percent of the present commercial energy supply. Therefore, coal remains to dominate the energy mix. 7.4 The nuclear power is a clean and non-polluting energy. In India, total installed capacity of the nuclear power is about 4120 MW, which contributes 3 percentage of the total installed capacity in India.
7.5 Total Installed Capacity of the Power Sector in India as on 30.11.2007 is depicted in the Table 7.1
Table 7.1 Total Installed Capacity in India
Source: Ministry of Power: Government of India 7.6 The installed power generation capacity in the country has increased from 124271.97 MW as on 31.5.2006 to 138251.63 MW as on 30.11.2007. The capacity addition during the period was 13979.66 MW. Out of total Installed capacity of 138251.63 MW, a major chunk of the installed capacity in the power sector was from State sector. The contribution was 72,231.82 MW. This formed 52.3 percentage. Contribution of each sector to the national grid as on 30.11.2007 is shown in the table 7. 2.
1 State sector 72231.82 52.3 2 Central sector 47350.99 34.0 3 Private sector 18668.82 13.7
Total 138251.63 100.00 Source: Ministry of Power, Government of India
Nuclear Energy Source 7.7 Uranium is an important raw material to develop the nuclear energy. In India, Uranium reserves are limited. What compounds the problem is that setting up heavy water plant, fast breeder rector and other equipments pertaining to the nuclear energy plant involve a lot of investment without adequate returns. In this context Koodamkulam Atomic power station (2x1000MW) in Tamilnadu, is a major boon, mainly because Russia gives all technical support towards this project. If this project comes into force, 2000 MW of power can be added to the national grid. By 2020, India hopes to produce 20000 MW of nuclear power. This will be a meagre 7 percent of our aggregate installed capacity. Energy Sector in Kerala 7.8 The need for equipping Kerala Power System to meet the demands of the expected explosive growth in the industrial sector is well recognized. The expected growth in modern areas like I.T sector calls for increased quality and reliability of the system. The need of the hour is a quality improvement to meet the demands of the industrial field and match the modern consumer expectation. In Kerala, Kerala State Electricity Board (KSEB) is the sole organization to supply the power to different categories of the consumers. KSEB has a major role in setting of adequate generation capacity as well as transmission and distribution network. As per section 172(a) of the Electricity Act 2003, KSEB has been continuing as the State Transmission Utility (STU) and Distribution Licensee. KSEB aims at providing electricity for all at affordable price and meet the future demand during the Eleventh Plan period by developing Hydro Electric projects in the State and ensuring share from upcoming interstate projects. Integrated functioning of all the key sectors viz. Generation, Transmission and Distribution is imperative in this background. Generation 7.9 Increasing the capacity of hydel generation by harnessing the untapped potential in the State without much disturbances to the forest and its bio-reservoirs is the key strategy adopted by the KSEB. Hydel energy being green energy and low cost one, the KSEB continues to concentrate on adding capacity of hydel generation. 7.10 There are 24 Hydel projects owned by KSEB and 2 by private agencies. The wind farm located at Kanjikkode with an installed capacity of 2.025 MW is the only one of its kind utilizing the non-conventional energy sources. The Brahmapuram and Kozhikode Thermal Power Plants with an installed capacity of 106.6 MW and 128 MW respectively uses LSHS as fuel and are owned by the KSEB.
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7.11 The Kerala State Electricity Board has an installed capacity of 2087.23 MW on its own with another 570.016 MW contributed by NTPC and private sector producers taking the total installed capacity of State to 2657.25 MW. 7.12 The plants that are catering to the energy demands of the State are the Kayamkulam plant of NTPC with an installed capacity of 359.58 MW and the BSES, Kochi Plant with an installed capacity of 157.00 MW. The KPCL, Kasaragod with capacity of 20.44MW is the latest entrant in the Independent Power Project (IPP) segment of generation. The balance is met from import of power from the central sector. Details of energy source and its installed capacity in Kerala are shown in the Table 7.3
Table 7.3
Energy Source in Kerala as on 31.03.2007 Sl. No. Source of Energy Installed Capacity
Total 2657.25 Source:KSEB 7.13 Figure 7.1 also highlights total Installed Capacity in Kerala from hydel, thermal and wind. Fig: 7.1
7.14 Total installed capacity went up by 0.49 percent to 2657.25 MW as on 31.3.2007, from 2644.25 MW in 31.3.2006. Only 13 MW of the power has been added in the Kerala grid, which was made possible through renovation and modernization of Neriamangalam and Sabarigiri hydroelectric projects. No other project has been commissioned during 2006 – 07. Many of the schemes initiated by KSEB, such as Kuttiar Diversion Scheme (37 MU), Kuttiadi Tail Race Scheme (3.75 MW), Kuttiadi Additional Extension Scheme (100 MW), Neriamangalam
Installed Capacity (MW)
Hydel1883.6
Thermal771.62
Wind2.03
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Extension Scheme (25 MW) are progressing, these are expected to be commissioned in 2007 – 08 itself. Details of ongoing generation project and completed projects in Kerala are shown in Appendix7.2 and 7.3. Projects in the pipeline are shown in the Table 7.4
Table 7.4
Projects in the pipeline Sl. No Name of the Project Installed
Source: KSEB 7.15 Once again nature has been kind enough to provide bountiful monsoon which helped the KSEB to generate more hydel power. The board could manage the power supply situation with higher quantum of cheaper hydropower. This also helped Board to earn substantial revenue by utilizing the features of the Availability Based Tariff (ABT) by generating more power during day peak periods thereby availing higher Tariff under Unscheduled Interchange (UI). With the strategic decision, Board also could sell excess power to the traders in the Central Public Sector. During the year peak demand reached 2742 MW and the normal demand reached 2034 MW. The year also witnessed the record consumption in a day viz. 47.81 MU on 23.3.2007 and record monthly consumption 1413.44 MU in March 2007. The increase in demand and consumption is a definite and encouraging indication of the things to come and KSEB is taking various measures such as tap hydel potential to the extent possible and avail power from Central Sector units to meet the increasing demand.
7.16 Share from Central Sector Power Stations is given in the Table 7.5
Table 7. 5 Share from Central Sector Power Stations
7.17 Meanwhile, Government of India has unilaterally decided to cut down the State’s share from the Central grid. This impedes KSEB’s commitments to meet growing power requirement from peak and off peak seasons. Coal Based Power Project 7.18 Baitarni West Coal block has been jointly allotted to Orissa Hydro Power Company (OHPC), KSEB and Gujarat Power Corporation Ltd (GPCL). MOU has been signed between the allottees on 12.11.2007 for the formation of SPV/Joint Venture Company for the development of mines and mining of coal from Baitarni West Coal Block. About 60.21 crore tonnes coal reserve has been identified at the proposed block and it can be utilized by these states. Kerala can also generate 1000 MW of power from this project. The growth of power system in Kerala is shown in Table 7.6
Table 7.6 Growth of Power System in Kerala
Particulars/ Year 2005 2006 2007(up to
31-08-2007) Installed Capacity(MW)
2644 2657 2657
Annual Sales(MU)
10270 11331 4850
Per Capita Concumption (Kwh)
427* 465* 467#
EHT.Lines-Ctkm
10292 10399 10447
Sub Stations-Nos
256 271** 275**
HT-lines-Ctkm 34596 36415 36961 LT-Lines-Ctkm 217899 226128 229458 Distribution Transformers-Nos
37724 39872 40718
Revenue from Sale of Power –Rs.crore
3590.11 4286.13 1648.62
Source: KSEB *Population based on 2001Census **Includes 1no 400KV Pallippuram S/S of PGCIL #Estimated value based on present consumption pattern Power Purchase Agreement (PPA) 7.19 KSEB has signed Power Purchase Agreement (PPA) with National Thermal Power Corporation (NTPC) for State's share of electricity from the proposed second stage of the NTPC'S mega thermal power project at Simhadri in Andhra Pradesh. As per agreement Kerala will get 200 MW from Simhadri Coal based Power Project. The coal as a fuel and enjoying exemption from the excise duty and income tax under the union government' s Mega Power Policy, would cost Kerala only about Rs. 2.50. The tenure of the agreement is 25 years.
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7.20 On the otherhand, KSEB has made attempts to obtain power from the proposed Ultra Mega Power Projects (UMPP) for 1200 MW from Tadri (400 MW) in Karnataka, Akalthara (200MW) in Chattisgarh, Krishnapatnam (400 MW) in Andhrapradesh and Orissa (200 MW). But only a tentative allocation of 200 MW power from the prposed Tadri, Karnataka has been given to Kerala. Kerala has been allocated 300 MW from Tamilnadu UMPP. 7.21 The cost of power purchase and generation has been arrived at assuming a normal rainfall in 2007 – 08. During 2006 – 07, State has received sufficient rainfall. On account of good monsoon, the board has taken necessary steps to avoid spilling of dams and the Board could sell the additional power at competitive rates through M/s NTPC Vydyuth Vypar Nigam Ltd (NVVN) and Power Trading Corporation (PTC). Due to the high price of Naphtha & LSHS, KSEB has not been able to schedule full generation of energy from BSES Kochi, KPCL Kasaragode and NTPC Kayamkulam and from the KSEB'S own power stations BDPP and KDPP. However, considering the increase in peak load requirements and also for system reliability, the KSEB proposes to operate 40 MW from BDPP and 60 MW from KDPP during peak hours in 2007 – 08.The Ratio of Hydro – Thermal mix in Kerala is shown in Table: 7.7
Table 7.7 Hydro – Thermal Mix in Kerala from 2002 – 03 to 2006 – 07
Source:KSEB 7.22 According to the report on Seventeenth Electric Power Survey of India, Power requirement in Kerala is substantially increased every year. In the year 2006 – 07, 11147 million kwh of power has been utilized. It reveals that 8.5 percent of power additionally utilized during 2006 – 07 over the corresponding period of previous year. In the coming five years total utility will be hiked by 7 to 35 percentage. KSEB have already initiated steps for new power projects to meet growing power demand. Details of power consumption in Southern State are shown in the Table: 7.8
Table 7.8 Electrical Energy Consumption (in Million kwh)
Sl. No.
State 2004 - 05 2005 - 06 2006 – 07
1 Kerala 9360 10272 11147 2 Tamilnadu 41286 43780 46935 3 AP 37620 41246 45134 4 Karnataka 24781 26518 28747
Source: Seventeenth Electric Power Survey of India
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Transmission 7.23 Transmission network in Kerala is connected to the Southern Region Transmission System through two 400KV double circuit lines at Madakkathara and Trivandrum. There are five major inter state transmission lines. The major substations include one 400 KV. Substation and fourteen 220 KV substations and four 220 KV substations under construction. The main grid comprises of the 220 KV system. The present peak load demand is increased up to 2800MW. 7.24 The transmission network has been expanded by adding 106 Kms of EHT lines constructed during 2006 – 07. 7.25 The targets and achievements of Transmission infrastructure during 2006 – 07 is shown in the Table7.9 Table 7.9
Transmission Infrastructure 2006 – 07 Sl. No. Item Target Unit Achievement Unit Percentage of
Achievement
1 440KV Substations 0 Nos 0 Nos 0
2 220KV Substations 4 Nos 0 Nos 0
3 110KV Substations 10 Nos 2 Nos 20
4 66KV Substations 4 Nos 3 Nos 75
5 33KV Substations 47 Nos 10 Nos 21.28%
Source : KSEB 7.26 The above table reveals that the target of transmission infrastructure could not be achieved. No 220KV substation was constructed during 2006 – 07 against the target of four numbers. Only 2 numbers of 110KV substations were constructed during the tenure against its target of 10 nos. Imperative performance has not been shown in the case of construction of 66KV and 33KV substations during 2006 – 07 against their targets. 7.27 The transmission facilities like substations and transmission lines as on 31.8.2007 are given in the Table 7.10
Table 7.10 Transmission facilities in Kerala As on 31.8.2007
Transmission Plan 7.28 Enhancing load handling capacity of the transmission system, avoiding bottlenecks/congestion in power flow, adequate redundancy to meet the system exigencies, ensuring power evacuation from the new projects, ensuring availability of power in every part of State etc. are the core objective of the State Transmission Plan. Being the State Transmission Utility, KSEB is statutorily bound to discharge all functions of planning and co-ordination relating to intra-state Transmission system. Load Dispatch Activities 7.29 The State load dispatch centre schedules generation from various generating stations, central sector stations and IPP depending on the load condition and the real time frequency. The Load Dispatch Centre also monitors the transmission system and issues sanction for shutdowns. Water availability, inflow consumption, demand etc are daily collected and monitored in the Load Dispatch Stations. Major Activities
Daily Scheduling Generation Short term & Long term planning of generation schedule Economic load dispatching Grid discipline Co-ordination with neighbour grid Maintenance of the communication net work, communication equipments and
SCADA system etc. AT&C Loss reduction 7.30 Since 2001 – 02, the Board has been able to achieve significant reduction of losses in the system by replacement of faulty meters and electromechanical meters by electronic meters, anti-theft activities, system improvement schemes, energy audit and computerization of billing etc. 7.31 The total loss in the system in 2001 – 02 was 32.15% which has been reduced to 23.43% by the close of 2006 – 07. The AT&C losses in the system, reduction achieved and financial savings accrued to the Board are given in the table7.11
7.32 The above table depicts that despite marginal increase in consumption of energy over the years, the total quantum of energy generated and purchased remained more or less at the same level between 2001 – 02 and 2004 – 05 due to progressive reduction in the loss and saving of energy which ranged from 221.06 MU to 284.65 MU per years. Thus, by way of AT&C loss reduction there has been saving of Rs.61.9 crore in 2002 –03, Rs. 75.44 crore during 2003 – 04 Rs.88.53 crore in 2004 – 05, Rs. 68.59 crore in 2005 – 06 and 69.09 crore in 2006 – 07. Transmissions Distribution loss has also declined considerably in the consecutive year from 2001 – 02 to 2006 – 07. The seventeenth electric power survey of India anticipates that T&D loss would be reduced to 15% by the year 2011-12 from 23.43 percent during 2006-07. Figure 7.2 highlights reduction in the T&D loss over the years.
Figure: 7.2
Distribution
7.33 Electrifying all households is a national target in the power sector. At present 66.79 lakhs households in Kerala are electrified. However, a recent survey on various socio economic conditions in Kerala put the percentage of electrified households in Kerala as 85%, which is well above the national average. Thus roughly around 10-11 lakhs households, mostly in the rural areas remain to be electrified in Kerala. The RGGVY Scheme launched by Government of India is expected to cover a large portion of these areas.
7.34 The distribution system is being modernized by computerization of different activities in the sector. Computerization work of billing and revenue collection in all section offices is in progress. The target and achievement in the distribution sector is shown in Table7.12
Table 7.12 Targets and Achievements of distribution infrastructure during 2006 – 07
Sl. No. Item Target Unit Achievement Unit Percentage of
Achievement 1 11 KV lines 2000 Kms 1819 Kms 90.95
2 Distribution Transformers 3000 Nos 2148 Nos 71.60
3 L.T. Lines 10000 Kms 8229 Kms 82.29
4 Service connections 5.00 lakhs 4.79 Lakhs 95.80
Source : KSEB
Transmission&Distribution loss
23.43
24.5926.22
32.1530.41
28.46
0
5
10
15
20
25
30
3520
01-0
2
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
Year
T&D
Los
s (%
)
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7.35 In addition to above, composition of category of consumers as on 31-10-2007 is shown in figure 7.3
Figure 7.3
National Electricity Policy 7.36 In compliance with section 3 of the Electricity Act 2003, the Central Government has notified the national electricity policy. It aims and objectives are follows:
Access to electricity – Available for all households in next five years Availability of power- Demand to be fully met by 2012. Energy and peaking
shortages to be overcome and adequate spinning reserve to be available. Supply and reliable quality power of specified standards in an efficient manner
and at reasonable rates. Per capita availability of electricity to be increased to over 1000 units by 2012. Minimum life line consumption of 1unit/household/day as a merit good by years
2012. Financial turn around and commercial viability of Electricity sector. Protection of consumers' interests.
7.37 In line with the above objectives, several reforms were made by the KSEB, which are summarized below:
Power Sector Reforms Improve consumer satisfaction
(a) Trouble cell management system 7.38 The Board has introduced centralized trouble cell management system and mobile service units for attending to break down and for restoring uninterrupted power supplies in the major cities in Kerala.
(b) Distribution Automation Project
7.39 KSEB has introduced distribution automation project by installation of 120 RMU and laying of 120 KM of 11 KV XPLE cables.
Category of Consumers as on 31-10-2007
Industrial1%
Agriculture5%
Commercial15%
Domestic79%
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(c) Computerization of Billing and Revenue Collection 7.40 Board has already completed computerization of LT billing, cash collection and accounting in 184 section offices. Data entry work in the balance 426 is in progress.
The H.T&E.H.T billing has also been computerized.
(d) Simplification of procedure for service connection 7.41 As part of mitigating complaints on metering, consumers themselves have been permitted to purchase energy meters of their own for installation after checking by the Electrical Inspectorate. 7.42 The District Advisory Committee has been constituted in all the districts and considering the consumer density and geographical area, 80 new electrical section offices have been formed throughout the State to facilitate better service to the consumers.
(e) Additional Service Connections 7.43 The State Government and KSEB are taking efforts to provide additional service connections to 5 lakh consumers ever year. 5.48 lakh connections could be given during the year 2005 – 06 and 4.79 lakhs connection during 2006 – 07. Board has also given 3.35 lakh connections to BPL category over the last four-years. 7.44 Board has also taken up the prestigious schemes such as APDRP and RGGVY to strengthen the transmission and distribution net work in Kerala.
(f) Revenue Gap 7.45 Revenue gap has been reduced considerably for the past 3 –6 years, during 2006 – 07 revenue gap was recorded all time low about 142.23 crores compared with the previous years. (g) Anti Power Theft Squad (APTS) was active during the years with as many as 16221 inspections throughout the State. An amount of Rs. 11.04 crores was realized against an assessment of Rs.12.73 crore. (h) Prudent Power management initiatives have resulted in a situation wherein the State was free from power cuts and load shedding. Voltage & frequency of the power system was well within the specified limits. The availability of EHT & HT feeders was about 98% all over the State. Developmental Activities 7.46 KSEB has undertaken various developmental activities in the distribution sector. In respect of MPLADS and SDF for MLA's, total 1074 and 3143 works were carried out. Under the peoples plan campaign, 38887 works were completed till 31.8.2007. These details are given in the tables 7.13, 7.14 and 7.15
Table 7.13 Works under MPLADS as on 31-08-2007
Region Total no of Works
Works Completed
Amount of Works executed
(Rs.lakhs) South 392 377 321.20 Central 233 219 325 North 514 478 811.19 Total 1139 1074 1457.39
Source:KSEB
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Table 7.14 Works under SDF for MLA’s as on 31-8-2007
Region Total no of Works
Works Completed
Amount of Works executed
(Rs.lakhs) South 1048 979 642.65 Central 775 698 528.13 North 1693 1466 1027.36 Total 3516 3143 2198.14
Source: KSEB
Table 7.15 Works under Peoples Campaign Programme
Region Total no of Works
Works Completed
South 14386 13439 Central 11439 10625 North 16097 14823 Total 41922 38887
Source:KSEB Accelerated Power Development and Reforms Programme (APDRP) 7.47 APDRP, a major initiative to bring about reforms in power distribution, has been initiated by the Ministry of Power, Government of India, for restoring the commercial viability of the distribution sector. The funds provided for the programme are utilized for upgradation and modernisation of sub transmission and distribution networks. 7.48 Works execution of 46 town scheme amounting Rs.341.81 crores have been sanctioned for installation of energy meters, construction and re-conducting of 11KV lines, installation of 100 KVA transformers, computerization of billing etc so as to reduce T&D loss and for new service connections and energy accounting. As on 31.3.2007 total expenditure was 277.13 crores. 7.49 In addition to town scheme, KSEB is also implementing city scheme. Three special schemes for the cities of Trivandrum, Kochi and Kozhikode with total outlay of Rs. 304 crores have been sanctioned. The major works include construction of 11 KV lines (underground cables), installation of distribution transformers, construction of substations, Distribution Automation, SCADA, TCMS, GIS mapping etc and they are proposed to be completed by 31.10.2008. Expenditure incurred for the city scheme as on 31.3.2007 was Rs. 2.12 crores. Financial Achievement of APDRP scheme is given in Table 7.16
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TABLE 7.16 Financial Achievement under APDRP Scheme as on 31.3.2007
Name of Scheme
Date of Sanction
Scheme Amount
Amount Released fromGoI to GOK
Amount Received
from GoKby KSEB
Counter part
funding received
Counter funding
from KSEB fund
Total amount
Received by
KSEB
Total amount spent by KSEB
Circle Scheme
(3 Circle)
26-8-2002 148.24 72.00 143.11 (closed)
Town Scheme
(7Towns)
27-11-2002
160.72
161.22
55.07 138.48
New Town Scheme
(26 towns)
01-10-2004
123.91 32.05 101.38
New Town Scheme
(13 Towns)
4-4-2005 57.18 40.66
241.24 19.88 420.24
37.27
New City Scheme
(3 Cities)
04-04-2005
304.00 46.69 46.69
46.69 2.12
Total 794.05 248.57 287.93 159.12 19.88 466.93 422.36
Source:KSEB 7.50 Meanwhile Government of India has released an amount of Rs. 12.89 crores to Kerala as incentive component under APDRP for the State's Annual Plan 2007 – 08. Rajiv Gandhi Grameen Vidyuthikarn Yojana (RGGVY) 7.51 RGGVY is a new programme of the Government of India for providing access of electricity to all households within five years, which is one of the goals of National Common Minimum Programme (NCMP). 7.52 The scheme includes creation of Village Electrification Infrastructure (VEI) for electrification of households in unelectrified villages/habitations and for providing Rural Electricity Distribution Backbone (REDB) package for construction of 33/11KV or 66/11KV substations. 90% capital subsidy would be provided for the overall cost of the project under the scheme and 10% as loan from Rural Electrification Corporation (REC) Ltd. 7.53 Government of India have agreed in principle for the project proposal of Kerala amounting Rs. 438.36 crores. The proposals are (a) (Village Electrification Infrastructure) 7.54 VEI scheme for electrification of 3578 unelectrifical habitations covers 930 revenue villages of Kerala with an outlay of Rs. 343.78 crores. This package covers construction of 8353
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Kms of 11 KV line, installation of 9298 nos of 25 KVA Distribution Transformers, Construction of 3955 Kms of LT line and effecting 46784 nos of service connections. (b) Rural Electricity Distribution Backbone (REDB) 7.55 Package for construction of 7 nos of 66/11KV substations and 18 numbers of 33/11 KV substations involves an outlay of Rs. 94. 57 crores. M/s REC Ltd, the funding agency of Government of India, has sanctioned the RGGVY Scheme for implementation in the seven districts viz. Kasaragod, Kannur, Kozhikode, Wayanad, Malappuram Palakkad and Idukki with an outlay of Rs.221.75 crores. In Idukki district, Letter of Award has been issued to M/s. ICSA (1) Ltd for execution of works and NTPC has been entrusted to execute the works in the remaining six districts. 7.56 REC has also agreed to the proposal amounting Rs. 99.25 crores to execute the work in Southern districts of Thiruvananthapuram, Kollam, Pathanamthitta, Kottayam, Alappuzha, Ernakulam and Thrissur on May 2007. Pending Tariff Arrears 7.57 Different Government, Public and Private Sector organizations are not remitting the electricity tariff to KSEB promptly. 7.58 As on 31.3.2007 Rs. 1670.91 crores remained as outstanding dues to be collected. Kerala Water Authority (KWA) is a highest defaulter and has to pay a staggering amount of Rs. 636.16 crores. KSEB has to collect the pending amount from the defaulters on warfooting so as to reduce mounting burden faced by the KSEB. Details of arrears pending with different sectors are given in Table 7.17
Table 7.17 Arrear Details of Consumers as on 31-3-2007
(Rs.crore) Sl . No Name of Depts LT HT/EHT Total
1 Stat Govt Dept 114.89 14.00 128.89 2 State PSUs 339.80 493.37 833.17 3 Local Bodies 11.59 3.23 14.82 A Total 466.28 510.60 976.88 4 Central Govt Depts 0.21 0.29 0.50 5 Central Public
Sector Under takings
0.22 33.47 33.69
6 Inter State Energy 0.00 19.73 19.73 7 Private Sector 61.51 578.60 640.11 b Total under Central
Govt, Inter State &Private
61.94 632.09 694.03
Grand Total 528.21 1142.70 1670.91 Source: KSEB
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LNG Terminal at Kochi 7.59 The LNG terminal is a part of the newly created port based Special Economic Zone (SEZ) at Kochi and Petronet LNG Ltd (PLL) is one of the co – developers of the SEZ. The LNG receiving re-gasification terminal at Kochi would satisfy the enormous demand of natural gas for power, fertilizers, petro – chemical and various other industries in Southern States. The terminal is designed to handle a capacity of 5 Million Metric Tones Per Annum (MMTPA) of LNG. However initially re-gasification facilities shall be installed for 2.5 MMTPA of LNG. Cochin Port Trust has allocated 32 hectares of land at Puthuvypeen island for development of the LNG terminal which includes construction of jetty, storage and re gasification facilities - including two unloading arms, two full LNG tanks, vaporization system, utilities and off – site facilities. All the pre – project activities including various on – shore and off shore services, investigation, preparation of detailed feasibility report and basic engineering package, mathematical and physical modeling studies, marine environment impact assessment study etc have been completed. The company has also obtained various statutory approvals including environmental clearance from the Ministry of Environment and forest. As per the project schedule, the mechanical completion of the project will take 42 months from the date of award of contract. The mechanical completion of the project is expected by June 2010. The approximate cost of the project is Rs. 2500 crores. RGCCPP, Kayamkulam will be benefited most by way of conversion to gas based generation. Issues and Challenges faced by the KSEB 7.60 KSEB is facing some issues and challenges. The most pertinent among them are the following: • Environmental objections on new hydel projects. • Absence of optimum utilisation of hydel potential in the State • As fallout of the increasing price of petroleum products, the cost of thermal power is
skyrocketing. Obviously power purchase from thermal station is not affordable. • Inadequate transmission facility leads to poor quality of power supply. Thick vegetation,
high density of population, constraints on availability of land etc are the major factors that inhibit the drawing of transmission lines.
• Large amount of tariff arrears pending with Govt/PSU/Private sector. • Industrial, HT, EHT consumption are almost stagnant. • Forfeiting of power from Centre’s unallocated pool to Kerala. Tariff Structure 7.61 Tariff shall apply to consumers to whom Kerala State Electricity Board has undertaken or undertakes to supply electricity notwithstanding anything to the contrary contained in any agreement entered into with any consumer earlier by Board/Government or any of the Tariff Regulations or rules or orders. 7.62 Government had reduced the tariff by 20 paise per unit in respect of LT 1(a) Domestic and LT-VII (A)&B commercial category of consumers. Later, Government have revoked this order, and lifted the 20 paise concession for domestic category. The Board expects that this will result in Rs.10crores additional realization per month.
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7.63 Board had estimated the aggregate sale of energy as 10064.55 MU for 2005 – 06 and 10796.34 MU for 2006 – 07. As a result overall average realization rate from tariff increased by 4.85% to 324 paise/unit including sale to NVVN/PTC in 2006 – 07 from 309 paise/unit in the previous year. During 2006 – 07, KSEB sold energy at the rate of 499 and 564 paise/ unit to NVVN/PTC and TNEB respectively. This is a major contributing factor for increasing overall tariff in 2006-07.
7.64 The realisation efforts have been by and large successful. Average realization has gone up to 340 paise/unit in 2006 – 07 from 326 paise/unit over the previous year. The sale to TNEB was a major factor in the enhancement of the average realization. The details are shown in the appendix 7.4 and 7.5 Finance
7.65 A major source of fund generation by the Board was borrowings from the various financial institutions in the country. During 2006 – 07, Board borrowed Rs. 2637.90 crores. The major lending agencies are LIC of India, IDBI, NEC, SIDBI and PFC. Centre and State Governments are not providing any financial assistance/grant to the KSEB. However KSEB benefits from the central projects of APDRP and RGGVY. Source of funding of KSEB is shown in the Appendix 7.7. Revenue Gap
7.66 Performance during 2006 – 07 indicate a continuing trend of improvement in the financial and operating performance. This has been brought about by strategic initiatives for improving the power management and overall productivity and efficiency coupled with cost reduction efforts. As a result revenue deficit was reduced from Rs. 144.58 crores in 2005 – 06 to Rs. 142.23 crores in 2006 – 07 (provisional). The total revenue during 2006 – 07 amounted to Rs. 4416.17 crores and the total expenditure was Rs. 4558.40 crores. Revenue gap can be further reduced and eventually even eliminated provided the defaulters are some how made to pay their out standing tariff dues. Top priority need be given to efforts towards at making the defaulters clear their liabilities in a time bound manner. 7.67 As on 30.09.2007, the revenue earned from sale of power and other receipts was Rs. 1956.02 crores for the year 2007 – 08. The expenditure towards purchase of power was Rs. 862.68 crores, the annual budgeted figure being Rs. 2020.39 crores. As part of prudent management of the power system, the off take from the thermal plants in the State has been minimized to the extent possible. 7.68 Details of Revenue earnings and Revenue gap are shown in the Table 7.18 &7.19
Table 7.18 Revenue Earnings
Sl. No. Particulars 2004 – 05 2005 - 06 2006 - 07
1 Energy sold (Mu) (including sales outside the State)
9384.40 10905.70 12377.89
2 Income (crores) From Tariff 2917.36 3367.30 4009.70 Non Tariff 339.63 325.43 406.47 Total 3256.99 3692.73 4416.17
Source: KSEB 7.69 The average cost of supply per unit, revenue realization and the gap are given in the Table No. 7.20 which indicates reduction of cost, increasing tend in revenue realization and sizeable reduction in revenue gap over the years.
Table 7.20
Comparison of per unit cost of supply and realization (Rs/Kwh)
Sl. No. Particulars 2004 - 05 2005 - 06 2006 - 07
1 Average cost of supply 3.84 3.52 3.55 2 Average revenue realised 3.47 3.39 3.36
Gap : 1 –2 0.37 0.13 0.19
Source: KSEB Swapping of High cost Loans 7.70 The Board, by taking advantage of the prevailing interest rates in the financial market, has swapped the high cost outstanding loans by borrowing fresh loans at low interest rates. So far, KSEB has swapped Rs. 1733.40 crores of loans, saving an interest liability of Rs. 241.08 crore payable during the rest of the repayment period of the loans and an annual saving of Rs. 39.54 crore. The details of the swapping are given in the Table7. 21
Table 7.21
Details of Swapping of high cost loans (Amt in crores)
Before Swapping After Swapping
Yea
r Item Amount Interest
% Amount Interest
% Amou
nt
Premium
Paid
Net Savings
Annual Net
Savings Non SLR Bond
VI 300.00 15.25 187.58 7.50 54.72 132.86 26.57
REC Ist Stage 649.43 13-15 278.95 10.50 226.89 20.21 31.85 3.98 REC II nd
Total 159.11 71.93 57.75 4.65 9.36 1.19 Premature redumption Non-SLR
Bonds (BondXa)
0.10 11.40 0.03 Board’s own fund 0.03
Closure of loan from SBT for Neriamangala
m
20.00 9.00 10.69 Board’s own fund 10.69 1.04
2006
-07
Total 20.10 10.72 10.72 1.04
Grand Total 1733.40 820.40 533.62 45.53 241.08 39.54
Source:KSEB 7.71 Due to swapping of high cost loans, reduction in outstanding loans, fresh borrowings from least cost sources and reduction in cost of raising finance by way of dispensing with government guarantee, upfront payments, commitment changes etc, the Board has substantially reduced the interest burden.
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Box 7. 1 KSEB’s least cost Methodology
• Increase in the Sale of Energy • Effecting disconnection/dismantling and Revenue
Recovery Action against defaulters for improving revenue realization
• Reducing the commercial losses by replacement of faulty and sluggish meters by electronic meters
• Conducting special revenue recovery adalaths at the level of distribution circles
• One time settlement option to settle long pending HT/EHT dues
• Tapping the non-Tariff income sources • Intensification of anti power theft activities • Prudent planning of generation so as to get
maximum advantage of UI and sale of power to other utilities at competitive rates.
Aggregate Revenue Requirement (ARR) 7.72 KSEB has submitted its ARR for 2007 – 08 to the KSERC. It stated that Rs. 430.11 crores is expected to Revenue Gap limiting Rs. 4545.02 crores of ARR (Exp) and total income Rs. 4114.91 crores. During 2006 – 07 actual revenue gap was reduced by Rs. 142.24 crores by way of increased tariff and non-tariff income. Earlier KSEB estimated the total income as Rs. 3694.73 crores. Later this figure was increased substantially by Rs. 4416.17 crores with robust tariff and non-tariff collection. These details reflects in the Table 7.22
Total Income 3334.72 3316.01 3692.73 3694.73 3865.06 4416.17 4114.91 RevenueGap 492.25 51.31 144.58 302.78 -184.63 142.24 430.11 *Projected figure while filing ARR for 2007-08 source:KSEB Non Conventional Energy Programme 7.73 Our conventional energy reserves are finite and will only be available for a limited period and that also with the steadily increasing prices. The fossil fuel use is also linked to environmental problems, particularly global warming and climate change. The challenges of the present energy scene offer us a window of opportunity for renewable energy sources. This will reduce dependency on the fossil fuels. It becomes necessary to expand and diversify our energy supply mix and make the process of development environment - friendly. 7.74 Such energy sources, as biomass and wood energy, geothermal energy, wind energy, tidal energy and ocean energy are continuously and freely produced in nature and not exhaustible. They are known as the renewable sources of energy. 7.75 The major non-conventional Energy sources relevant to Kerala are solar energy, Bio energy, Wind energy, and Small Hydro Power and wave energy. 7.76 Agency for Non Conventional Energy and Rural Technology (ANERT) is the nodal agency of the Ministry of Non Conventional Energy Sources (MNES) Government of India for the State of Kerala. Wind Energy Programme 7.77 Wind energy can be used for two major applications, firstly as wind mills for pumping water for drinking as well as irrigation purposes and secondly as aero – generator for electricity generation for domestic and industrial use. In addition to this, wind energy battery charges are also available, which can store energy for lights, radio communication, and hospital equipment. They are also used to power various emergency related equipment.
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7.78 ANERT has completed data collection at the two wind monitoring stations – Pasavadigumbe of Kasaragode district and Pushpagiri of Iduki district. Installation of two new wind monitoring stations, sanctioned by MNRE (under 2005 – 06 scheme) at Chatayangulay of Palakkad and Talapoya of Wayanad are in progress. 7.79 ANERT was successful to take a lead role in solving the policy limitations. Technical and administrative clearances could be accorded for establishing 7.2 MW in Agali, Palakkad and 9.75 MW in Ramakkalmedu, Idukki. The initial activities for establishing the 5 MW wind farm at Ramakkalmedu as a joint project of KSEB and ANERT are still pending with KSEB. The details of potential sites for Wind Power Generation in Kerala is shown in the Table 7.23
Table7.23
Potential Sites for Wind Power Generation in Kerala Annual Mean Wind
Source: KSEB Bio Energy Programme 7.80 Biogas is generated by anaerobic digestion of biomass under certain conditions.It is a gaseous mixture containing about 57.7% methane, 45-30% carbondioxide and traces of other gasses such as ammonia, hydrogen sulphide, oxygen etc. Cow – dung is one of the important raw materials for production of biogas. It can be supplemented with other wastes like human excreta, sheep and poultry droppings and other agricultural and industrial organic weeds. 7.81 ANERT had taken up implementation of community biogas plants in various institutions. The achievement so far is 15 nos of community Biogas plants having a total capacity of 375m3 biogas generation per day in private sector institutions for thermal application, 3 biogas plants having a total capacity of 65m3 biogas generation per day for electrical application (approximately 15 KW installed capacity) and 9 plants with a total capacity of 170m3 per day ( thermal application) in government Hospitals.
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7.82 ANERT has also ventured into the new bioenergy utilization sector by taking up the high – efficiency biomass direct combustion system for replacing fossil fuel consumption in industrial establishment. The unit is being established in the Keral Ceramics, Kundara, and Kollam district with financial support from ANERT. 7.83 This will replace the fossil fuel (SKO/Diesel) being used in their hot air generator with cheaper and locally available biomass – empty palm fruit bunches which as disposed by Oil Palm India Ltd as their process waste. This project would be commissioned this year itself and is expected to be a model for other industries using fossil fuel for thermal applications. Solar Photovoltaic Programme 7.84 SPV is an appropriate and cost- effective source of electricity for basic services and amenities in an environmentally sensitive manner. Though identified as a costly option of electricity generation, solar photovoltaic energy generation was proven to be the most convenient source of energy for the electrification of remote, isolated – hamlets where the existing power grid cannot be extended. During the previous five-year plans ANERT had utilized this technology effectively to electrify about 20,000 remote backward class households. Banking on this experience ANERT had submitted a proposal to MNRE for assistance to take up solar electrification in other un-electrified remote backward class habitations also. Accordingly ANERT obtained Central Financial Assistance (CFA) for solar electrification of 5760 remote houses (73 backward classes colonies) spread in six districts of the state. ANERT had initiated steps to carry out detailed site surveys and DPR preparation for this project. Solar Thermal Energy Programme (STEP) 7.85 Solar thermal energy devices convert radiant energy of the sun into thermal energy for different productive works. They have an additional advantage of being economical compared to current fuel prices. Solar water heaters for domestic and industrial purpose, solar crop dryers and solar cookers are devices propagated under this programme. 7.86 Solar Thermal Energy division had focused its activities in the last two quarters of the current year, to complete the spill over projects of the previous year with a target of providing Solar Water Heating systems in domestic and service sector, so as to replace or reduce the use of electric geysers. The achievement so far in this sector for the current financial year is installation of 468 nos of Domestic Solar Water Heaters (468000 LPD) and 15100 LPD of substantial Solar Water Heaters. The institutional installations include 32 nos of 300 LPD SWH installed in PHC/CHCs and 9 nos of SWHs having capacity of 500 LPD or more in Taluk/District/Medical College Hospitals.
Improved Chulha Programme 7.87 Under this Programme ANERT had taken up installation of 70803 domestic chulha for SC/ST families, 9132 domestic chulha for general / BPL families, 314 community chulha for Anganwadi and 359 communitychulha for schools during2006-07. In continuation to this, ANERT had installed 5478 domestic model improved chulhas in SC/ST household and 4014 chulhas in general category houses, 104 community model improved chulhas in anganwadies and 115chulhas in schools having noon meal programme.
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Table 7.24
Summary of achievement of Improved Chulha Programme Domestic Chulha Community Chulha District SC/ST Gen/BPL Anganwadi Schools
7.88 The project taken up in 2006 – 07 for carrying out of the pre – feasibility site investigation of the Micro Hydel Power (MHP) potential of Kannur district is completed. The study covered about 80 sites spread along the western ghat ranges of the Kannur District. The final report of this study is getting ready. 7.89 It is observed that while most of the sites are in the micro range suitable for providing power to the near by habitations, a few sites are even suitable for supplying power to the grid at least for part of the year. One of such sites Thenamkayam in Payyavoor Panchayat having a potential of supplying 2MW power to the grid for about 7 months in a year is taken for model DPR preparation. Civil Surveys of this site are completed and the DPR preparation is in progress. 7.90 One major limitation of most of the sites is that sufficient water for power generation will be available up to 6-9 months only and hence it is observed that further studies on “MHP – Biomass gasification Hybrid Power generation systems” are much relevant. Total Energy Security Mission (TESM)
7.91 The major thrust in energy sector for the eleventh five-year plan is to achieve Total Energy Security for the State. Accordingly the flagship project "Total Energy Security Mission” was launched. The Mission Programme targets to achieve cent percent rural electrification as well as effective fulfillment of other essential energy needs of the society. 7.92 The objectives of the Mission include the following
• Achieve cent percent household electrification in the state with a minimum electrical energy availability of one unit per household per day.
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• Provide at least the energy equivalent of eight cylinders of liquid petroleum gas to every household annually for cooking.
• Ensure sufficient energy availability for all rural entrepreneurs and community institutions.
• Initiate demand side management, energy conservation and promote use of non-conventional energy to achieve the above on a sustainable basis.
7.93 A State Level Mission Committee consisting of members of the State Planning Board, Principal Secretaries of Power, Local Self Government and Planning, Directors of ANERT and EMC has been formed for providing directions to these Mission activities. The Mission is championed by ANERT and EMC, two leading agencies working on energy in the state along with the Kerala State Electricity Board. The greatest strength of TESM is the grass root level linkages that the Mission has achieved by virtue of its partnership with the local governments in the State. 7.94 As per the GO (Rt) No: 69/2007/PD dated 26.03.2007, Government has constituted the Mission Group for implementation of programmes in the Non-conventional Energy Sector. Subsequently, the 7th Meeting of the TES Mission Group decided to organize District Level Conventions of Local Body Leaders, Three Regional Training Programmes and Training of Teachers and resource persons in every district in the month of May and instructed ANERT to provide immediate expenses for the TESM programme from the carry over funds available at ANERT, which will be reimbursed later from the plan fund allotted for the Mission. 7.95 Accordingly, ANERT organized the "State Level Orientation Workshop for district level key functionaries" on 27 th April 2007 and the "State Level Review Meeting of the Co-ordination Committee" on 19th May 2007 both at Kudumbasree Office Auditorium. Based on the consultations of these meetings, Government has constituted the State Level Co-ordination Committee of the Mission (GO (Rt) No 111/2007/PD dated 17.05.2007) and District Level Co-ordination Committees in every district (GO (Rt) No. 1460/07/LSGD dated 21.05.2007). 7.96 The half-day District Level Conventions of Local Body Leaders in all districts were conducted from 21st to 25th of May. Three Regional Training Programmes for the Resource Person (or Trainer of Trainees) selected from each districts were held at Thrissur (on 23 rd May), Thiruvananthapuram (on 24th May) and Kozhikode (on 25th May). Subsequently the District Level Teachers Training for the team of two teachers selected from each Panchayat, Municipality and Corporation as primary co-ordinators of the "Energy Environment Corp", were held as a one day orientation training in every district on the 25th and 26th of May. This trained team of activists took the lead in the conduct of a Lecture Session in all the Local Bodies of Kerala on 5th June 2007, heralding the launch of "Total Energy Security Mission" as well as building up public awareness on the relevance of Energy Security, Energy – Environment Linkages and the Renewable Energy Potential of the State. 7.97 ANERT has also taken up steps for the Information, Education and Communication activities for the Mission. As part of the IEC campaign Time Table Cards with messages of the Mission were printed and distributed to the school students, Cinema Theatre Slides were prepared and distributed to all major theatres in all districts, Video – Audio Sports on the Mission Programme were prepared and telecasted through AIR and Doordarshan. 7.98 As a prelude to the formulation of projects at Local Self Government institution level, four regional workshops were held at Thiruvananthapuram, Ernakulam, Palakkad, and Kozhikode for introducing TES Mission Programmes and vision to the pilot Panchayats. At Present more than
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450 Local Self Government Institutions (LSGIs) have proposed projects for preparation of detailed energy plans during the financial year 2007 – 08 itself and all the district panchayats have proposed major renewable energy projects as part of the Mission programme. The Mission also proposes to undertake a detailed survey of promising Small Hydro Electric Power projects in the State. Conservation of Energy
7.99 Energy Management Centre (EMC) is an autonomous body under the department of Power, Government of Kerala. It is the nodal agency for enforcing the Energy Conservation Act 2001.It is devoted to the Improvement of energy efficiency in the State, promotion of energy conservation and encouraging development of technology related to energy through research and training, demonstration programmes and awareness creation.
7.100 The following are the important activities of EMC during 2007.
1. EMC conducted a comparative study to evaluate the energy savings possible in a ceiling fan by using both electronic as well as conventional (resistance type) regulators and came to the conclusion that an average saving of 27% can be achieved under reduced speed, if the fan is used along with an electronic type regulator against a conventional type regulator. Though the initial cost of the electronic regulator is high, the higher saving will pay back the investor in less than 10 months.
2. A study on parboiled rice cooking in Kerala has revealed the following: • Majority of fuel used is firewood, hence the energy conservation will benefit
in protecting forest cover. • Cooking the food with vessel closed saves time and energy when compared
to vessel open, about 20 – 40%. • Propagation of improved chullahs save close to 4.5 x 106 metric tonne of
firewood per year. Using thermal/pressure cooker along with this gives further cut by 1.76 x 106 metric tonne of firewood per year.
3. EMC has commissioned Energy Efficiency improvement studies in the units of Trivandrum Air Cargo Terminal, Shangumuham, Foam Mattings (India) ltd, Alappuzha, and Kochi Corporation.
4. In order to encourage energy conservation activities in the State, applications for Energy Conservation awards instituted by Government of Kerala, are invited every year by the EMC. In the year 2006 – 07, 27 industrial units participated in the award scheme and these industries saved 40 Mu/year electrical energy, which is equivalent to 7.61 MW capacity addition.
5. EMC organized energy clinics through out the State. Every clinic is a unique programme of EMC on energy conservation activities in domestic sector through women change agents. At present there are 130 trained women volunteers in the State. Through awareness, 10 – 15% of total energy can be saved.
6. The EMC, through the efforts in promoting Energy Conservation Club Project (ECCP) of the Energy Conservation Society (ECS), sets up energy conservation clubs in schools and colleges all over the State to create awareness among school/college students. Clubs now exit in about 500 schools and 50 colleges/ITCs in the State.
7. EMC prepared Techno – Economic Feasibility Report (TEER) for the small hydropower projects at Palchuram, Alamparathodu and Mukkuttithode for Sree Rayalaseema Hi – strength Hypo Ltd, Hyderabad.
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8. EMC had prepared 8 DPRs in total of them the first phase of 4 projects are at Kozhiyilakuthu, Panamkidantha, Padivathil and Killikkalthodu and the second phase of 4 projects are at Rasathikuth, Rajamudy, Balanthode and Edathanalkuthu.
9. EMC acts as a consultant for kickstarting the implementation of Arippara SHP, by providing technical advice and interacting with financial institutions, KSEB, KERC etc.
Enforcement of Standards and Statutes
7.101 Functioning under the control of Electrical Inspectorate, The Meter Testing and Standards Laboratory tests and sets the specifications and quality of electrical equipment, materials and gadgets as per the standards prescribed by the Bureau of India Standards (BIS). 7.102 The following are the achievements/activities during 2006 – 07.
• There are four Regional Testing Laboratories attached to the District Offices at Thiruvananthapuram, Ernakulam, Thrissur and Kozhikode. During 2006 – 07, five more districts Offices had started under Electrical Inspectorate at Palakkad, Malappuram, Kannur and Kottayam and Kollam.
• Completed office automation for granting licences without delay to wireman/supervisor/contractor, in the Kerala State Electricity licensing Board which is under the control of Electrical Inspectorate.
• Department has observed Tower Safety Week all over India in order to minimize electrical accidents and to create awareness among the people.
• The Kerala State Electricity Licensing Board and Kerala Cinema operators Examination Board are functioning under Electrical Inspectorate.
• The activities of State/District Level Electrical Accident Controlling Committee were made more effective during the period.
• There was much increase in the case of Revenue Recovery during the period. • Proposal has been submitted to the government for amendment of Electricity
Duty Act 1963.
Kerala State Electricity Regulatory Commission (KSERC) 7.103 KSERC was constituted on 14th November 2002 under the provision of Kerala State Electricity Regulatory Commission Act, 1998 and came into effect from 10th June 2003. At present KSERC has come under the purview of Electricity Act, 2003 and its function as per the section 8 of the Electricity Act 2003 are the following.
1. Determine the tariff for generation, supply, transmission and wheeling of electricity within the State.
2. Regulate Electricity purchase and procurement, process of distribution licenses including the prices.
3. Facilitate inter – state transmission and wheeling of electricity. 4. Issue licenses to persons seeking to act as transmission licenses, distribution
licenses and electricity traders. 5. Promote cogeneration and generation of electricity from renewable sources of
energy by providing suitable measures for connectivity with the grid and sale of electricity to any person enforce standards with respect of quality, continuity and reliability of service by licensees.
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Regulations issued by the Commission
1. Kerala State Electricity Supply Code (Second Amendment) Regulations, 2007 Notification dt 20th April 2007
2. KSERC (Licensees' Standards of Performance) Regulations, 2006 – postponement of enforcement in the case KSEB Notification dt 28 th April 2007.
3. KSERC (Consumer Grievance Redressal Forum and Electricity Ombudsman) (First Amendment) Regulations, 2007 Notification dt 3rd May 2007.
4. Kerala State Electricity Regulatory Commission (Fees) Regulations, 2007 Notification dt 29th June 2007.
5. KSERC (Supply of Power from Captive Generating Plants to Distribution Licensees) Regulations, 2007 Notification dt 6th August 2007.
Orders issued by the Commission
7.104 Kinfra Export Pormotion Industrial Parks Ltd., Rubber Park India (P) Ltd, Cochin Special Economic Zone, Kanan Deven Hills Plantation Company Pvt Ltd and Thrissur Corporation have filed their ARR and ERC for the year 2007-08. KSERC has issued the order accordingly. Moreover the proceedings for approving the ARR & ERC submitted by KSEB for the year 2007 – 08 and revision of Electricity Tariff are in the final stage Orders will be issued very shortly.
