State Electricity Regulatory Commissions are now articulating rules and regulations to implement Elec.Act -2003.These will replace the existing rules and regulations framed based on the repealed acts. Those who fight against the existing deleterious act in force sincerely, should also oppose the anti- people rules and regulations vehemently. The struggle against the act become meaningless, if the rules and regulations to implement the act is ignored, while it is made / approved by the states’ machinery. Given below is the Kerala experience.

Three regulations were formulated by KSERC. One was regarding the appointment of Ombudsman for redressing the grievances of consumers. This was finalized after public hearing as a regulation to be launched for implementation. Another two draft regulations advertised for public hearing were, Electricity supply code

Terms and conditions of retail tariff.

In the first regulation, provisions were made for implementation of sn.46 of the new act in force, combined with sn.43 very stringently. Accordingly, those who want to register an application for electric connection should bear the total expenditure for the lines to be constructed, transformers to be installed, etc. The system prevailing in KSEB is to construct LT service connection lines up to 200m free of cost for giving electric connection. In case it is more/ sub- transmission lines are to be constructed and transformers are to be installed, it is done on minimum guarantee basis.25 % of estimate amount is to be paid as current charges/year for 7 years, in this system. This system helped the people of Kerala a lot for expeditious electrification of houses and villages. The consumer strength of Kerala is 74 lakhs out of 3 crores of its papule. Still, about 3 lakhs of applications for electric connections are pending for more than 4 years. Parallel to this another system is also prevailing which is opened to those who need electric connection out of turn priority, which is called OYEC. Total expenditure is to be paid, as envisaged in the regulation under discussion, if one prefers OYEC. The draft regulation, if it is finalized, will be a lightning blow to those who cannot bear this huge amount even to register as an applicant for electric connection.

In the second regulation, the thrust given is to eliminate cross subsidy, as envisaged in sn.63 of Elec. Act – 2003.In addition to this the commission is trying to fix the terms of calculating the retail tariff in line with the terms and conditions of tariff ordered by CERC. But here the proposal for rate of interest for loan is the PLR of a scheduled bank plus a figure that will be decided by the commission. Higher rate of depreciation is allowed as advance against depreciation for repayment of loan in case of inadequacy of cash for debt repayment, with out considering the available ROE.

If the above proposals of terms and conditions of retail tariff are finalized there will be unbearable increase in tariff to domestic and agricultural consumers.64 out of 74 lakhs of consumers are coming under this category. Power is free to those domestic consumers who consume less than 20 units/ month. Domestic consumer’s tariff starts form Rs.1.15 and that of agricultural consumer’s from Rs.0.65.Agricultural consumers have to pay Rs 6/KW/month in addition. But the ‘cost to serve’ an LT consumer is approximately Rs.5/-while the average tariff in Kerala is Rs.3.17. The low average tariff is the resultant of the subsidy provided by the state government. The difference between actual tariff and average tariff is cross subsidy. If the regulation is adopted with the above provisions in the draft, both domestic and agricultural consumers have to pay a minimum tariff equal to ‘Cost to Serve’ minus the subsidy paid in advance by the government, if any, as per sn.65 of the act.

In this back drop, KSEB Officers Association filed counter petition before the KSERC against all the anti-people provisions in the draft regulations, including the few explained above, in line with the memorandum submitted by NCCOEEE to the Prime Minister. Even though hundreds of petitions were filed before the commission, non except that filed by KSEB Officers Association and another one filed by the former President of KSEBOA were serving these purposes and prepared understanding the hidden agenda of the draft regulations. The author of this note appeared before the commission for argument on behalf of KSEBOA being a professional in this job.