Thiruvananthapuram: Power consumers will face a hike of 36 paise per unit in electricity charges this month, which includes a 19 paise surcharge added to the regular tariff increase.

The Regulatory Commission had earlier approved a tariff hike of 16 paise per unit for the fiscal year and 12 paise per unit for the next two years. However, according to the Kerala State Electricity Board (KSEB), the actual increases are 16.94 paise and 12.68 paise, respectively. Additionally, consumers are now required to pay a 19 paise surcharge, further increasing the financial burden.

Of the 19 paise surcharge, 10 paise was determined by KSEB, while 9 paise received approval from the Regulatory Commission. The surcharge aims to offset the temporary rise in costs associated with purchasing thermal power due to surging fuel prices. KSEB has indicated that this surcharge is likely to remain in place next month.

In addition, KSEB has sought approval for another surcharge of 17 paise per unit in December to recover Rs 37 crore spent on power purchases between April and July this year. The Commission is yet to decide on this demand, leaving the possibility of further increases in consumer bills.

Small scale industries to receive subsidy

KSEB has termed the latest increase in electricity rates as nominal. The revised rates include a 3.56% hike for households, 2.31% for small-scale industries, and 1.20% for large-scale industries.

Small-scale industries, which receive a 10% daytime discount, are expected to see a reduction in their overall bills despite the hike. For households consuming up to 50 units per month, the daily increase amounts to just 26 paise, impacting 26 lakh consumers in this category. For the 83.77 lakh consumers using less than 150 units per month, the daily hike is Rs 1.60.

The government has assured the continuation of subsidies. Consumers using up to 40 units per month will receive a subsidy of 35 paise per unit, while those consuming between 41 and 120 units will get 50 paise per unit.

Although the actual cost of one unit of electricity is ₹7.20, the Regulatory Commission has approved a reduced rate of ₹6.96, resulting in a revenue loss of 34 paise per unit for KSEB.