KSEB may be in Big Trouble Depends on Monsoon

3 May 2013
Thiruvananthapuram

Tuesday’s power tariff hike notwithstanding, the Kerala State Electricity Board (KSEB) is keeping its fingers crossed and watching how the monsoon is shaping up. The power utility will find itself in a bind supply-wise and financially if the 2013 southwest monsoon fails to deliver. After the drought-hit state plunged into a power crisis earlier this year, the KSEB had shored up its plans for the ongoing summer anticipating good southwest monsoon rains. While the IMD has predicted a normal monsoon for the country as a whole, there were reports that the southern states, including Kerala, might receive delayed or below-normal rainfall.

The IMD website shows that the El Nino factor is neutral this year. In the last 100 years, there have been only five occasions when the monsoon failed in such a scenario. So, technically we are safe,” KSEB Chairman M Sivasankar said.

Mohammedali Rawther, KSEB member (Generation and Transmission Operations), said. Through the hike in electricity tariffs, the KSEB will be able to raise `650 crore, according to the calculations of the Kerala State Electricity Regulatory Commission. In fact, according to KSEB projections, generation from its own hydel and thermal stations and power purchases would cost it Rs 7,083.4 crore in 2013-14, which is 36 per cent more than what it cost in the previous fiscal.

KSEB officials said that power purchase agreements are in place for the next two years. A weak monsoon will nevertheless deepen the power crisis and force Kerala to spend more money on purchases. While the KSEB is limiting hydro-electricity generation to approximately 11 million units (MU) during May, it hopes to up the generation to 18 MU from June onwards if the rain gods smile.

Source– http://newindianexpress.com/states/kerala/If-monsoon-plays-truant-KSEB-will-be-in-deep-trouble/2013/05/03/article1572733.ece

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