KSEB proposes 25% rate hike for off-peak power; What it means for night-shift industries

Kochi: A proposed increase in electricity rates could spell trouble for industries operating during night. KSEB has suggested a 25 percent hike in electricity rates for industrial use between 10 pm and 6 am.

This proposed change will affect industries that run on a three-shift basis, including those in the IT sector. To discuss the impact of this rate hike, a meeting will be held by the Electricity Regulatory Commission at Ernakulam Town Hall on Thursday at 10:30 am, where consumer feedback will be gathered.

Currently, the state has 1,48,277 industrial connections consuming a total of 490 crore units of electricity annually. This represents 17.96 percent of the state’s overall electricity consumption of 2723 crore units. These industries are billed based on different time zones: normal hours from 6 am to 6 pm, peak hours from 6 pm to 10 pm, and off-peak hours from 10 pm to 6 am

KSEB’s proposal includes reducing the tariff for the normal time zone (6 am to 6 pm) by 10 percent, which would benefit day-time industries. However, for the night hours, the recommendation suggests charging 100 percent of the current rate instead of the 75 percent rate currently applied during off-peak times. This change means that industries operating at night will face much higher costs.

The state generally has enough electricity supply during the day but struggles with excess demand at night. The board’s proposal aims to shift electricity usage to the day and decrease it at night. Despite this, the new rates could create financial strain for businesses that operate during night hours.