KINESCO Power and Utilities Private Limited (KPUPL), a fully owned subsidiary of KINFRA, has submitted its truing-up petition for the financial year 2023-24 to the Kerala State Electricity Regulatory Commission (KSERC). KPUPL operates as a distribution licensee for five industrial parks under KINFRA: KEPIP Kakkanad, Hi-Tech Park Kalamassery, KIITP Kanjikode, KINFRA Mega Food Park Kozhipara, and KINFRA Petrochemical Park Kochi.
The petition filed by KPUPL seeks approval on multiple financial matters. These include acceptance of actual transmission and distribution (T&D) losses of 2.65%, an increase of 16% in normative operations and maintenance (O&M) costs, and revision of normative O&M expenditure. The licensee has also requested the approval of one-time expenses amounting to ₹102.38 lakh incurred in managing licensee operations, and tax expenses of ₹233.99 lakh. CSR expenditure of ₹11.05 lakh and interest on security deposits of ₹40.30 lakh are also part of the petition.
KPUPL has sought the Commission’s approval for a capital expenditure of ₹26.06 lakh and depreciation claims for the year. Furthermore, they have requested an exemption from interest on regulatory surplus or a revised calculation excluding unapproved expenses like electricity duty under Section 3, which amounted to ₹741.90 lakh. The company has asked for computation of Return on Equity (ROE) based on equity and share premium account as per previous KSERC clarification and has claimed a revenue surplus of ₹524.21 lakh for the year.
According to the Commission’s earlier order dated March 19, 2024, the approved revenue surplus for 2023-24 under the ARR&ERC was ₹1,044.27 lakh. However, in this truing-up petition, the actual revenue surplus stands at ₹524.21 lakh. The difference arises mainly due to higher-than-estimated power purchase costs, increased tax liabilities, and expenses like CSR and regulatory obligations.
When comparing income and expenditure, KPUPL’s revenue from power sales stood at ₹8,417.93 lakh in the truing-up petition against ₹6,792.01 lakh approved in ARR&ERC. Expenditures rose as well, with actual power purchase costs at ₹7,379.23 lakh, significantly higher than the approved ₹5,755.92 lakh. Administrative and general expenses, R&M expenses, and depreciation also saw increases. Tax and CSR expenses were absent in the ARR but appeared in the truing-up claim. The approved ROE was ₹60.74 lakh, while the actual claimed ROE was ₹45.64 lakh.
The hearing for the petition was held on March 4, 2025. KPUPL was represented by key officials including the CEO in charge and finance managers, while Kerala State Electricity Board Ltd. (KSEB) was represented by assistant executive engineers. The Commission issued its order on April 23, 2025, taking note of the submissions and considering the discrepancies between the approved and actual figures. KPUPL has requested flexibility to revise or modify its petition if necessary and to condone any errors or omissions.
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