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KSERC directs KSEB to implement cost cutting measures

 

Thiruvananthapuram: The State Electricity Regulatory Commission (SERC) said that KSEB had earned an operating profit of Rs 70 crore in the FY 2020-21. However, SERC chairman Preman Dinraj asked KSEB to consider implementing cost-cutting measures to improve profit.

Even though KSEB is allowed to buy electricity from outside upto Rs 4 per unit, it has been able to buy for Rs 1.50 and Rs 2. Some of the agreements are entered for a period of 15 to 25 years and the board has to pay more to purchase electricity.

According to the CAG audit, KSEB is still in loss. However, the board implemented cost-cutting measures during recent years. The results are visible, said ERC Chairman. The Commission has recommended that these long-term contracts should not be renewed when they expire.

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