Thiruvananthapuram: Just a day after the Kerala State Electricity Regulatory Commission (KSERC) issued interim orders revising power tariffs, the state government announced its decision to stop the subsidy offered to consumers. 

According to the latest report, consumers who use up to 120 units of electricity per month will no longer receive subsidy benefits. The revised tariff rate became effective on November 1, with the Regulatory Commission permitting an average increase of 20 paise per unit. This decision to terminate the subsidy is expected to result in higher power bills for consumers. Besides, the government has also withdrawn the subsidy on fixed charges.

The Regulatory Commission estimates that around 90 lakh KSEB consumers use 250 units of electricity per month and the increase in tariffs is only marginal.

Earlier, the government introduced a subsidy to those who consume 240 units of electricity within two months, i.e. up to 85 paise per unit. Interestingly, during the last state budget, the government voiced its decision to end the power subsidy. 

Consumers used to receive a 35-paise subsidy for up to 40 units and a 50-paise subsidy for 41-120 units. As a result, the customer received a total subsidy of 85 paise. Those who utilised at least 100 units per month received Rs 44 by way of subsidy. 

By ending the subsidy, the power bills from next month will increase by Rs 10 for those using up to 50 units. Those who use up to 100 units will have an increase of Rs 20, Rs 33 - 150 units, Rs 48 - 200 units, Rs 58 - 250 units, Rs 90- 300 units, Rs 123- 350 units and so on.