Is Kerala charging domestic users more for electricity compared to other states?

Kerala’s electricity tariffs vary across consumption categories, with domestic consumers in some segments benefiting from lower rates. A study by the Kerala State Electricity Regulatory Commission reveals that domestic consumers with a monthly consumption of 40 units pay the lowest rate in the country, Rs 1.50 per unit. This is notably cheaper than other southern states such as Telangana (Rs 2.50), Tamil Nadu (Rs 4.80), Andhra Pradesh (Rs 6.95), and Karnataka (Rs 9.70).

However, for consumers with higher monthly consumption, Kerala’s tariffs increase. In the 100 units per month category, Kerala ranks eighth nationally, charging Rs 4.67 per unit. Only Telangana offers a lower rate among southern states at Rs 3.13 per unit. The state performs even worse in the 250 units per month category, where Kerala is 12th, with a tariff of Rs 6.40 per unit.

The situation worsens for households with 400 units per month. Kerala ranks 20th in this category, with a rate of Rs 8.54 per unit. For those using 700 units per month, Kerala’s tariffs rise further to Rs 9.60 per unit, placing it 21st among the 29 states. This makes Kerala’s power bills significantly higher for larger domestic consumers.

Industry-friendly tariffs

On the flip side, Kerala’s tariffs for industries have been designed to attract businesses. The state offers the fourth-best tariff for agriculture at Rs 2.79 per unit, the best among all South Indian states. For small industries (with 10 KW connected load and 1,000 units per month), Kerala offers the sixth-best tariff in the country, at Rs 6.18 per unit, and for medium industries (connected load of 50 KW), Kerala offers the ninth-best tariff at Rs 7.19 per unit. Notably, these tariffs are the cheapest in South India.

However, the state’s tariff for medium commercial establishments is relatively high, at Rs 10.68 per unit, making it less competitive compared to other states.