Thiruvananthapuram: The Regulatory Commission has decided not to immediately approve a tariff hike to offset the losses of the Kerala State Electricity Board (KSEB). Instead, it has directed KSEB to first reassess its loss calculations. Only after submitting revised figures and suggestions for covering the losses will any decision be made, the Commission informed the Central Electricity Appellate Tribunal (APTEL).

The Tribunal had recently dismissed the Commission’s previous affidavit which sought more time to recover the losses. Instead, APTEL asked the Commission to submit a clear action plan with a specific timeline for recovery. The Commission has now submitted the roadmap, clarifying that the current losses cannot be recovered immediately.

The recoverable amount from KSEB—termed a "regulatory asset"—will need to be recalculated based on recent developments. KSEB has already applied to revise its 2024–25 financial figures, and the Commission has assured that the process will be expedited.

As per earlier calculations, KSEB’s losses stood at ₹6,645 crore. A four-year tariff increase had already been approved to cover part of this deficit. Now, KSEB must propose how to address the remaining shortfall, based on which the Commission will take a final decision.

It remains uncertain whether this approach will be accepted by the Tribunal. Notably, in a previous Supreme Court ruling, power distribution companies were instructed to recover their losses by 2028. Both Kerala and Delhi Regulatory Commissions have since approached the Supreme Court seeking an extension of the deadline to 2031.