KSEB sweeps profit under carpet to hike rates

Kochi: The Kerala State Electricity Board (KSEB), which registered profit for the first time in its history, came out with a report hiding the same and submitted an application to the Electricity Regulatory Commission demanding a tariff hike. As per the audit done by an external agency, the KSEB had an expense of Rs 16,249.35 crore against an income of Rs 16,985.62 crore, leading to a profit of Rs 736.27 crore during the financial year 2021-22. The Board achieved a profit of Rs 736.27 crore from the Rs 998.53 crore deficit in the assessment done prior to the commencement of the financial year.

However, the KSEB submitted a truing-up petition before the Electricity Regulatory Commission amplifying expenses in order to conceal this profit. In doing so, it locked the income and expenses at the same figure of Rs 16,635.94 crore. It also demanded that the power rates should be increased for four years continuously. The KSEB is demanding that through the rates hike, it should accrue Rs 1044.43 crore next year alone. The truing-up petition means submitting the real income-expense statement before the Regulatory Commission after external auditing at the culmination of the financial year.

The KSEB, which secured profit in 2021-22, increased the rates in 2022 June. It expects an increase in revenue to the tune of Rs 1000 through this every year. The statement for this year is yet to come.

Overflowing dams in the monsoon led to increased production of hydel power, due to which KSEB purchased less power from outside. It could sell more power as well. These twin factors landed the Board in profit. At the time of demitting office, former chairman B Ashok had said that the Board would make a profit of Rs 1500 crore. That dwindled to Rs 736.27 in the audited results.

Three wings in profit
The three wings of the KSEB are in profit. The Generation Unit has Rs 116.38 crore, Transmission Unit Rs 119.99 crore, and the Distribution Unit Rs 253.50 crore profit, according to the audit reports. While these remain the facts, the KSEB has demanded the charge hike, stating it has zero loss and zero profit. The Board has demanded hikes of 40 paise for this financial year, 36 paise for next year, and 13 paise for 2025-26.