Kerala to implement recommendation to hike electricity tariff monthly

The decision to implement monthly hike of electricity tariff  was taken in a top-level meeting chaired by Electricity Minister K Krishnankutty. 

Representational Image | Photo: AP

Thiruvananthapuram: Kerala is likely to implement the union government’s direction to hike electricity tariffs on a monthly basis. As per the new rule, distributors (DISCOMs) can impose surcharges on consumers while purchasing power from outside.

Consumers will also benefit from tariff cuts in months when the price of electricity purchased from other states goes down.

The decision in this regard was taken at a top-level meeting chaired by Electricity Minister K Krishnankutty.

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The Kerala Electricity Regulatory Commission (KERC) will be directed to implement the new rules within three months. As per the changes, distributors can now adjust the tariff without prior approval of the regulatory commission.

During heavy rains, the purchase of electricity from outside sources is likely to go down.

As the demand for electricity soared after the pandemic, the market price also went up. It is likely to stay the same for at least one year.

While the current move is likely to be a burden for consumers, it will be beneficial for distributors in the public and private sector, including the Kerala State Electricity Board (KSEB). It was widely criticised as an attempt to help private players. Kerala has been vehemently opposing the privatisation of DISCOMs.

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