KSEB agrees to pay licence fee to SERC

THIRUVANANTHAPURAM: After two years of fierce sword-rattling, the Kerala State Electricity Board (KSEB) capitulated on Wednesday by agreeing to pay licence fee to the State Electricity Regulatory Commission.The KSEB has agreed to pay the fee "under protest,’’ sources said. What is interesting is that the Board had even issued orders earlier appointing a standing counsel for fighting the Commission in the Kerala High Court on this issue.The licence fee, paid by all distribution licensees (KSEB is one since it distributes power) to the Commission, comes to between Rs 1 crore and Rs 1.5 crore per year. The Commission has demanded the KSEB to pay up Rs 6.43 crore, the fee payable from 2006 to 2010.This is also the first major about-turn made by the KSEB after the UDF Government took over in May.KSEB and the Commission had locked horns over the fee after former Chief Secretary K J Mathew took over as Commission Chairman in 2009. But the power utility had claimed exemption saying it was a state-run utility and the government had given it a waiver. But the Commission did not accept this argument. In an April 5 order, the Commission had termed the KSEB’s stand "unconvincing’’ and "casual.’’The Commission had also argued that even if the KSEB was to pay up, the burden on the consumer would be minimal - "at the rate of Re 1 per consumer per annum.’’ The licence fee norms came into force in 2006, but the KSEB had ignored it claiming exemption.