Kochi: There is discrepancies over the figures submitted by the Kerala State Electricity Board (KSEB) concerning electricity rates. There is a massive flaw between the audited financial data for the fiscal year 2023-24 and the figures KSEB provided to the Kerala State Electricity Regulatory Commission (KSERC) in its petition for a tariff increase.
According to the audited financial statements for 2023-24, KSEB’s total expenditure amounts to Rs 22,336.49 crore for the fiscal year. The total electricity sold during this period is recorded at 2,569.80 crore units, as per the tariff increase petition submitted to the KSERC.
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When the expenditure is divided by the total electricity sold, the cost per unit comes out to be Rs 8.69. However, in the same petition, KSEB reports that the average cost of supplying one unit of electricity is only Rs 7.32. This suggests a difference of Rs 1.37 per unit, amounting to Rs 3,520.62 crore less than the actual cost shown in the audited figures.
The strategy behind the discrepancy
It appears that KSEB has not disclosed its full expenditure when requesting a tariff hike. If the actual cost had been revealed, it would have triggered a much higher rate increase. Instead, the board has opted to ask for a smaller increase by underreporting the cost.
Once this small increase is granted, the board can later submit a ‘true-up petition’ to adjust the rates, citing the actual costs. This allows KSEB to collect additional charges in the form of fuel surcharges without public hearings or scrutiny. Consumers will perceive these as minor increases, though the rates could eventually climb considerably over time. The board has been gradually collecting smaller amounts initially, followed by higher charges in subsequent phases.
How much are consumers paying?
Based on the audited figures, KSEB’s total income for the 2023-24 financial year is Rs 21,802.48 crore. When divided by the total electricity sold (2,569.80 crore units), it suggests that consumers are paying an average of Rs 8.39 per unit, including fixed charges.
However, the Regulatory Commission has set the average tariff at only Rs 6.90 per unit, revealing a massive difference between the actual amount KSEB collects and the approved rate.
Published: 09 Dec 2024, 07:43 am IST
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