KSEB seeks revision of rates, submits proposals before Regulatory Commission

Thiruvananthapuram: Seeking a revision of rates for the next three years, the Kerala State Electricity Board (KSEB) has submitted fresh proposals to the State Electricity Regulatory Commission. According to the new proposal, the board demands an overall 34 paise hike per unit starting from 2024-25. This proposal includes an additional fare of 10 paise per unit from January to May,  when the consumption is higher.

Under the proposal, a separate tariff would be implemented for domestic consumers and small industries where the average consumption exceeds 250 units per month. The proposal also suggests different charges for power usage during daytime and evening hours. The board also seeks the possibility of increasing the rates from July 1, 2025, to March 31, 2027.

In November last year, the rates were hiked by 20 paise per unit by KSEB. If the proposals receive approval from the Regulatory Commission, the rates will increase accordingly.

As per the new proposal, the board suggests introducing Time-of-the-Day metering and billing for all solar electricity producers. They would need to return only 80% of the electricity produced during the day at night.

If the revisions are implemented, KSEB hopes to generate Rs. 811.20 crores in 2024-25, Rs. 549.10 crores in 2025-26, and Rs. 53.82 crores in 2026-27.

The summer tariff would not apply to consumers who limit their use to within 50 units per month. According to the proposal, small industries would receive a 10% reduction during daytime hours.

Domestic consumers whose consumption exceeds 250 units per month would be subject to the Time-of-the-Day tariff. They would receive a reduction of 10% from 6 am to 6 pm. From 6 pm to 11 pm, there would be a 5% increase, and for usage after 11 pm, there would be a 10% increase. If the average monthly consumption is above 250 units, the consumer would have to pay 25% more.