Since the power demand in Karnataka is growing, more and more power generating stations are being built and the electricity distribution companies are entering into new power purchase agreements (PPAs) with the producers of power. In olden days, there was little regulation of this process and as a result, power was often purchased at excessive price and the consumers were saddled with high tariffs. The Dhabol saga is an example.
But after the enactment of the Karnataka Electricity Reforms Act, 1999 and the Electricity Act, 2003, the PPAs are being regulated. It is now compulsory to get the PPAs approved by the Karnataka Electricity Regulatory Commission. The public can participate in the hearings conducted by KERC and this has made the PPA process relatively transparent and has greatly reduced questionable deals.
Mysore Grahakara Parishat participates in many public proceedings of KERC, including those connected with approving PPAs. It may be recalled that as a result of one of its petitions, KERC issued an advice to the government of Karnataka to take a fresh decision on Chamalapura thermal power plant.
Over the last few years, MGP had filed objections to the PPAs signed by the electricity distribution companies with Karnataka Power Corporation Ltd. (KPCL) regarding a diesel power station at Yelahanka, hydel plants at Almatti and elsewhere, thermal plants at Bellary and elsewhere on various legal, economic and environmental grounds. Some of the problems pointed out by MGP were rectified before the matter came up for hearing before KERC (such as cancelling the royalty clause which was in direct violation of the guidelines issued by the Central Electrical Authority). On the remaining issues, KERC held hearings and issued orders modifying the PPAs.
KPCL appealed to the Appellate Tribunal for Electricity, New Delhi against these orders of KERC arguing that it was not afforded opportunity of being heard before the orders were passed by KERC. ATE agreed with it and ordered that KERC should pass fresh orders in all these cases after affording an opportunity to KPCL to make its submissions. These hearings are scheduled for 3 PM on Monday, 15-6-09 (KERC notice on the hearings is enclosed).
It should be mentioned here that the ATE rules lean towards the electric companies and against the ordinary consumer. According to these rules, the minimum fee for appeal before the ATE is Rs. 1 lakh. The high fees are no problem for the electric companies since they can be passed on to the consumers as increased tariffs. But they will prohibit consumers, especially individual consumers, from fighting for their own cause before the ATE. This is a total mockery of the intent of the electricity reforms.
G.S. Nayak, member, Mysore Grahakara Parishat