Kochi, Jul 25: The CII on Friday, July 25, said the proposed 25 per cent power cut and the resultant increase in power cost is a matter of serious concern for the industries in Kerala.
While the industry understands that poor monsoon had necessitated this action, it fails to understand why the entire hardship had been put on high tension and extra high tension (HT&EHT) consumers who use only 25 per cent of the generated/purchased power in Kerala, CII Kerala State Council Chairman MSA Kumar said in a statement here. Expressing concern at cross subsidy across user groups, the CII said industrial consumers were already paying 130 to 150 per cent of the average cost of supply, whereas domestic consumers were paying 60-65 per cnet of the average cost of supply.
Similarly, commercial consumers were paying approximately 230 per cent of the average cost of supply, whereas irrigation and dewatering consumers were paying only 30 per cent of the average cost of supply.
''The power cut and the resultant increase in power cost coming on top of the fuel price hike and already exorbitant labour costs will cripple the power-intensive industries in Kerala,''he said.
Stating all user groups should share the burden in an equitable way, the CII said the state government's failure to carry out a reform process in the electricity sector has impacted its ability in addressing emergency situations.
A CII team will soon meet State Power Minister and KSEB officials to present a White Paper on the Kerala power situation with the industry's recommendations on overcoming the tight situation in the short and long run, he said.