KSEB has to pay RS 1620 crores for unused electricity

SN Jayaprakash/ Thiruvananthapuram

The contract with NTPC is valid till the year 2025.

Thiruvananthapuram: The National Thermal Power Corporation (NTPC) has given a huge blow to the Kerala Electricity Board in connection with the electricity plant situated at Kayamkulam. As per the new policy, the electricity board will have to pay Rs 27 crores per month for the unused electricity. This means Rs 324 crores per year and Rs 1620 crores for five years will have to be paid.

The state has stopped purchasing electricity from NTPC since 2017. Rs 324 crores will have to be paid per year as fixed deposit from the period between 2019 and 2024. However, KSEB informed that they will pay only Rs 324 in total. This has caused argument between the two parties.

The contract with NTPC is valid till the year 2025. Unless the contract is terminated immediately, KSEB will be under a huge crisis. KSEB has paid Rs 400 crores to NTPC between 2017 and 2019.

The money will have to be paid irrespective of whether the electricity from NTPC is used or not. The amount is decided by Central Electricity Regulatory Commission. It was fixed at Rs 207 crores for the period between 2014 and 2019. In 2018, due the intervention from the state government, it was brought down to Rs 200 crores.

Both KSEB and NTPC approached the regulatory committee and reached a consensus for a reduced cost from the period between 2019 and 2014. But NTPC did not appear for the evidence collection of the central commission. The court ruled that Rs 324 crores will have to be paid by KSEB.

The commission determined the amount and said that it can be adjusted after considering the cost of maintenance of Kayamkulam Electricity plant. KSEB calculated the real expense of the Kayamkulam plant at Rs 68 crores. Even though discussions with NTPC were carried out by KSEB in this regard, no decision has been taken yet.

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