Thiruvananthapuram: Kerala is set to hike the electricity tariff by September 30, with an average increase of upto 41 paise per unit. The proposal will be formulated by the Kerala State Electricity Regulatory Commission (KSERC).

Previously, there were indications of an impending rate hike, but it faced a legal hurdle when high tension and extra high tension consumers sought court intervention to restrain the KSERC from finalising the hike. However, the High Court has given the go ahead to KSERC. It will determine the electricity tariff for the next four years, which will go into effect on September 30.

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The Kerala State Electricity Board had initially suggested claiming Rs 407 crore from consumers for the Pension Fund, which was earmarked from the Master Trust Fund. However, HC halted this proposal. Nevertheless, KSERC has not been instructed to revise the proposal to hike upto 41 paise per unit. KSEB has urged KSERC to consider a 6.19 per cent increase to cover part of the deficit for the upcoming year.