The Kerala State Electricity Board (KSEB) has projected a revenue gap of Rs 2,208.31 crore for 2011-12.
The board has estimated an aggregate revenue requirement (ARR) of Rs 7,815.77 crore for the year. The total income is put at Rs 5,607.46 crore, comprising Rs 5,217.10 crore from the sale of power and Rs 390.36 crore from non-tariff streams, leaving a deficit of Rs 2,208.31 crore.
In its application to the State Electricity Regulatory Commission (SERC) for approval of ARR and the Expected Revenue from Charges (ERC) for 2011-12, the board has said according to the revised estimates, the revenue gap in 2010-11 is Rs 1,599.09 crore.
The aggregate revenue requirement in 2010-11 is at Rs 7,046.20 crore, while the total income works out to Rs 5,447.11 crore. The revenue from sale of power has been estimated at Rs 5,046.95 crore and from non-tariff sources at Rs 400.16 crore, leaving a deficit of Rs 1,599.09 crore.
The board had originally estimated the revenue deficit for 2010-11 at Rs 2,219.60 crore, but SERC had approved a deficit of only Rs 457.47 crore.
It has now sought SERC approval for the revised estimates.
The board has pointed out that it is in a transitory phase of implementing the provisions of the Electricity Act 2003, which may warrant revision of the estimates for 2011-12 due to some future events and contingencies.
Though it has taken care and caution in projecting the estimates for 2011-12, the board has requested SERC to allow it to revise the projections in the event of a poor monsoon, an abnormal increase in fuel prices and other contingencies that may arise from the implementation of the Electricity Act 2003.
Additional cost
Also, the board should be allowed to pass on to consumers the additional cost of generation and power purchase over the approved levels due to failure of the monsoon, reduction from Central generating stations, change in hydro-thermal mix and rise in the prices of fuels and coal.