WAITING FOR SERC MAGIC

Article Abstract:

Tamil Nadu had announced a 30 percent power cut for high tension (HT) consumers in 1997-98. It had a demand-supply gap of 300-400 mw. The power position improved in June-July 1998 with the advent of monsoon. The only addition to generating capacity in 1997-98 was from GMR Vasavi's 196 mw diesel-based Basin Bridge project. It is the first private sector project to evacuate power to the State grid. The demand for power is growing at 10 percent per annum. The demand for 2006-07 is projected at 13,000 mw. The present total installed capacity is put at 7,100 mw. Of this, the State sector accounts for 5,075 mw and central sector 1,841 mw. The working group of the State Government has projected the demand to go up to 8,060 mw by 2001-02 and to 12,981 mw by 2006- 07. The additional capacity planned includes 2,000 mw power plant based on liquefied natural gas (LNG) at Ennore and 1,500 mw lignite-based power plant at Jayamkondam. About 1,454 mw capacity will be added by the end of 2001-02 and 8,110 mw by 2005- 06 end. The transmission and distribution (T&D) losses amounted to 17.3 percent. Power supply free of cost to farmers amounts Rs1,900 crore a year. TNEB has increased tariff rate to industries, whose consumption is 44 percent, to make up for the revenue lost by free supply to farmers. Tamil Nadu plans to set up State Electricity Regulatory Commission (SERC) before March 31, 1999 which will plan load demand, advise Government and fix tariff rates for various categories to reduce the loss to the State Electricity Board. (rk)(psr)

Market information - general, Electric Power Generating, Electric Power Generation, Capacity

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SERC TO GET FREE HAND ON POWER TARIFF, 50% CAP TO GO

Article Abstract:

The ministry of power has removed the 50 percent ceiling on subsidies for all categories of consumers. The proposed state electricity regulatory commissions (SERCs) are given a free hand to fix the tariffs. The clause 29(3) of the Electricity Regulatory Commission Bill, 1998, which restricts SERCs from fixing tariffs below 50 percent of the actual cost of supply of power except for the agricultural sector will be removed. SERCs should consult the respective state government before fixing the tariff. The state governments should provide additional subsidy in their budgets. The SERCs can have one or three members and the chairman will have quasi-judicial powers. (rk)

Comment:

India: Ministry of power removes 50% ceiling on subsidies for all categories of consumers

Government regulation

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CESC TRIPS ON DEBT, IN THE RED

Article Abstract:

CESC Ltd, which supplies power to 1.5 million consumers in Calcutta and its surrounding areas, has incurred a net loss of Rs125 crore in 1997-98 as against a net profit of Rs41 crore in 1996-97. Its interest costs rose to Rs237 crore, of which the Budge Budge project loans accounted for Rs56 crore. The company's total expenditure was Rs1,324 crore. CESC has attributed the loss to the West Bengal government's control over power tariff, because of which it was unable to attain the reasonable rate of return under electricity laws. (gs)

Comment:

Incurrs net loss of Rs125 crore in 1997-98 as against net profit of Rs41 crore in 1996-97

Sales, profits & dividends, CESC Ltd.

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