Thiruvananthapuram: The Kerala State Electricity Regulatory Commission (KSERC) is gearing up to announce a hike in electricity rates in the state within two weeks. The Kerala State Electricity Board (KSEB) has demanded a hike of Rs 41 paise per unit. However, a final decision in this regard will be taken by the commission. 

The current move comes in the wake of the settlement of a case filed by Kerala High Tension and Extra High Tension Industrial Electricity Consumers’ Association in the high court. The court had earlier intervened and prevented the consumers from being liable for the principal amount of the bonds issued by KSEB to raise money for pension funds. With this, there could be a drop of 17 paise per unit. 

Nevertheless, if the commission permits the board to collect its previous liabilities by increasing the rates, then people will not be able to receive this benefit. In addition, at present, 18 paise is levied as a surcharge on average every month. If the board continues to levy surcharges along with a hike in rates, then the electricity bills will turn out to be a huge burden for the consumers. 

According to KSEB’s request, the prices should be hiked for a period of four years till 2026-27. The board is planning for a hike of Rs 1044.43 crore in 2023-24, Rs 834.17 in 2024-25, Rs 472.64 in 2025-26, and Rs 28.80 crore in 2026-27. The commission had also sought people’s opinions in this regard. 

Two companies express interest

Meanwhile, two companies, Arunachal Pradesh Power Corporation Pvt. Limited (APPCPL) and Manikaran Power Limited, have expressed interest in supplying power to the KSEB for a short period in order to resolve the looming power crisis in the state. As per their condition, the purchased power should be returned by the next monsoon period.
  
It is learnt that the APPCPL has agreed to supply 150 MW in November 2023 and 50 MW during March 1 - 15, 2024. Although Manikaran Power is also willing to lend power, it will be provided only during particular time slots of the day. However, the board is likely to move ahead with the agreements only if it could reduce power production within the state during the period. 

For APPCPL, the purchased power has to be returned at a later date. However, for Manikaran Power, an additional seven per cent must be paid on return. The companies had asked an average of Rs 7.50 for the tenders, for medium and short-term power supply, floated the other day. Even if the board moves forward with the contracts, the final decision rests with the commission.