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Commercial and Tariff

The office of Chief Engineer (Commercial & Tariff) handles all matters related with procurement of power and acts as the interface of KSEB Ltd with the Electricity Regulatory mechanism in the country.

The strategies including timing for power procurement on Long term, Medium term and Short term basis are evolved under the overall guidance of the Core Committee chaired by Director (Finance) and the office acts as the secretariat of the committee. The responsibilities associated with procuring power from the emerging power market in the country in a transparent and prudent manner is part of the function. All the activities associated with procurement of power from conventional sources including initiation of competitive tariff based bidding for selection of suppliers or generators, bid evaluation, selection of successful bidder, execution of Power Purchase Agreements (PPA) or Power Sale Agreements (PSA), administration of all existing and new PPAs & PSAs with Central Generating Stations, IPPs and traders etc are coming under the responsibilities of this office. The administration of PPAs with renewable energy project developers, which are executed by Chief Engineer (Corporate Planning), to the extent of bill verification and grant of admissibility is also managed by the office. Depending upon seasonal and diurnal variations in demand and supply, the prospects for sale of surplus power are constantly monitored and all possible market opportunities are tapped for maximising revenue from available resources. Moreover, the responsibility of executing and administering PPA for sale of power to various independent distribution licensees operating in small pockets in the State like Thrissur, Munnar etc are also being discharged.

The interface with State Electricity Regulatory Commission (SERC) is required for approval of recovery of each and every cost associated with the licensed activities of distribution and transmission as well as that of generation. The preparation, filing, managing public hearing etc in respect of Annual Revenue Requirement & Expected Revenue from Charges (ARR&ERC) of all SBUs of KSEB is a crucial function in this regard. Similarly, estimate rates for various works required for effecting new electric connections to consumers needs approval of SERC. All activities associated with seeking approval of SERC in respect of tariff for supply of power to all categories of consumers, independent distribution licensees as well as fuel surcharge and estimate rates of distribution works are handled in this office. Major cost incurred by KSEB is for procurement of power from central generating stations and for meeting inter-state transmission charges, the tariff for both is being determined by Central Electricity Regulatory Commission (CERC) through a participative process involving the generator, CTU and the buyers. For effective discharge of its functions, the SERC as well as CERC frames Regulations as mandated under the Electricity Act, 2003, through a participative process involving KSEB, Generators, all licensees and utilities in power sector, consumers etc. Effective participation in the above quasi-legislative tariff determination process and in the formulation of various subordinate legislations at the State and Central level on behalf of KSEB is the responsibility of this office. Apart from these requirements, this interface unit ensures fulfilment of various responsibilities under the licensed activities of KSEB, which includes filing of various compliance reports as well as reports regarding performance in the licensed activities to the SERC, in coordination with the SBUs within KSEB.

In addition to these major functions, this office provides guidance and clarifications to various functional units within KSEB on matters related with tariff, various regulations, procedures etc.