KSEB seeks to raise power tariff by Rs 1.05 per unit over four years

Thiruvananthapuram: Power tariff in Kerala may go up soon. The Kerala State Electricity Board (KSEB) has sought the nod of the power regulator to raise the tariff by Rs 1.05 per unit in the next four years. For industrial units, the board has demanded an increase of 50 paise per unit.

The proposed hikes would be implemented in a staggered manner over the next four years. 

As the Kerala Legislative Assembly session is on a decision will be taken only after September 14 based on the decision of the regulator.  

The prevailing power rates are valid till September 30. The order raising the tariff will be issued by the Kerala State Electricity Regulatory Commission after it receives the government’s opinion. 

KSEB's demand

The KSEB has sought an increase in tariff by an average of 40 paise (6%) in the current and coming financial year and by 20 paise (3% ) and 5 paise (1%) in the following two years, totalling Rs 1.05 over the next four years. However, the regulator may decide on a rate lower than this.

The Commission need not accept the KSEB recommendations or demands as they are. The Commission has not taken a decision on the quantum of increase in the tariff. 

The KSEB set in motion the process to increase the rates after the High court passed its verdict in the litigation against the hike. Moreover, it waited for the conclusion of the Puthuppally by-election. 

The court’s stay on tariff hike came after the Commission conducted hearings at four centres in the State regarding the plan to raise the rate for the coming four years and was preparing to announce its decision before July 31. 

The KSEB had submitted before July 31 all the information that the Commission had sought from it. 

Meanwhile, the authorities have said that if the Central Government decides to advance the Lok Sabha election, the hike in the electricity rate would be deferred.