THIRUVANANTHAPURAM: The State Electricity Regulatory Commission has issued an order directing KSEB Limited to pay up Rs 13.81 crore as licence fee and its interest; Rs 6.43 as licence fee for the period between 2006-07 and 2010-11 and Rs 7.38 crore as interest accumulated for non-payment till 2015. The arrears of Rs 6.43 crore, the ERC has asked KSEB to collect from consumers.
However, the commission warned the KSEB against recouping the interest amount of '7.38 crore from consumers. The ERC has also asked the Board to submit the licence fee for 2016-17 immediately. Payment of licence fee has always been a bone of contention between KSEB and the ERC. KSEB continues to maintain that the state had exempted it from paying licence fee through a GO in 2006.
The ERC has ruled that in the case of delay in remittance of licence fee, the licensee has to pay interest at double the ruling bank rate, and in the case of continued default the Commission said it had the power to can initiate action for revocation of the licence.
As per the Kerala State ERC (Conditions of Licence for Existing Distribution Licensees) Regulations, 2006, and its amendment in 2009, all licencees shall pay the fee to the ERC at the rate of 0.03 per cent of the revenue from sale of power for the previous financial year.
All the licensees in the state except KSEB Ltd. has remitted licence fee for the period from 2006-07 to 2016-17. However, KSEB began paying the licence fee since 2011 after the ERC took the stand that it would not approve KSEB’s annual revenue requirements.
Further, the ERC has argued that it requires the licence fee for its financial independence. The ERC had already informed the Government that it would not require continued budgetary support for meeting its day to day revenue expenditure.
