Electricity Minister Ok. Krishnankutty on Friday blamed policies adopted by the Central authorities for setting the stage for an ‘‘emergency’‘ in the country’s power sector.
Central policies favouring entry of personal monopolies in power technology and distribution had been doubtless to set off an enhance in power tariffs in the close to future, Mr. Krishnankutty mentioned, replying to questions in the State Assembly. It may also give rise to a state of affairs the place electrical energy would change into inaccessible to the farming neighborhood, he mentioned.
The following Central choices had been paving the approach for an emergency in the power sector, Mr. Krishnankutty alleged: the Electricity (Amendment) Bill that contained provisions for encouraging privatisation in the sector, the Electricity (Amendment) Rules that might allow distribution firms to mechanically impose thermal gas surcharge on electrical energy payments on a month-to-month foundation, the introduction of the High Price Day Ahead Market mechanism that permitted producing firms to promote at up to ₹50 per unit in power exchanges, and the course issued to import coal-based thermal power vegetation to function at full capability.
Such policies and rules of the Centre that favoured producing firms in the matter of worth willpower had negatively impacted Kerala, which trusted outdoors purchases to meet almost 70% of its demand, he mentioned. Between April and October 2022, the State-run Kerala State Electricity Board (KSEB) incurred an further expenditure of ₹11.07 crore in power purchases from thermal vegetation utilizing imported coal, in accordance to him.
Entry of personal gamers in power distribution could lead on to their cherry-picking of high-paying and concrete customers, leaving the burden of provide to the much less worthwhile client segments and rural areas to the public sector, Mr. Krishnankutty mentioned. In the long term, such developments may undermine the sturdy public sector interventions in power together with whole electrification achieved by Kerala over the years, he mentioned.
Mr. Krishnankutty additionally accused the Centre of utilizing the further borrowing restrict of 0.5% of the GSDP tied to power sector reforms as a ‘‘weapon’‘ to preserve the States underneath its thumb.
