Kerala may hike power tariff at night, reduce during days, says minister

Palakkad: To solve the electricity crisis, Kerala Power Minister K Krishnankutty said that the state is thinking of reducing the tariff only for use during the day and increasing it at night. As smart metres are installed in most homes, electricity consumption can be calculated at each time accurately, he said.

"Electricity usage is less during the day. Most electricity is used at night. In this situation, the rate increase during peak hours is being considered to reduce the electricity consumption as much as possible," Krishnankutty said.

The KSEB is planning to introduce the ‘Time of the Day’ (ToD) tariff for domestic as well as industrial consumers, which will reduce the charges for using power during daytime and lead to an increase in the rate for nighttime consumption.

Official sources said that this recommendation would be included in the proposals related to tariff revision to be submitted by KSEB in August. Currently, consumers using more than 250 units a month are sought to be covered under ToD and discussions are taking place to reduce the limit to 200 units.

A reduction in daytime tariff has been recommended considering the steady rise in the generation of solar power. However, the tariff for consumption during the off-peak hours at night from 10 pm to 6 am would be increased in view of rising use of power to charge electric vehicles. Meanwhile, in order to avoid a crisis in this regard, KSEB suggests the setting up of electric vehicle charging facilities at government and private offices.

Move to purchase more power
The KSEB has also decided to invite tenders to purchase 1,000 megawatts of power as the consumption has gone up in the state. The KSEB has already entered into an agreement with Power Finance Corporation (PFC) to finalise a 15-year contract to purchase 500 megawatts. The amount fixed for this deal is Rs 30 lakh.

Instructions have also been issued to complete the tender procedures swiftly as the KSEB’s earlier decision to renew a contract to purchase 465 megawatts at a low rate was cancelled by Electricity Appellate Tribunal. Officials said that the KSEB would approach the Supreme Court against the tribunal’s order and new tenders have been invited as there could be a delay in delivering the judgment.

In addition, the KSEB has approached the Central government to supply 500 megawatts under the Coal-linked Power Purchase System. Yet another decision is to sign short-term monthly contracts to buy electricity during January-May, 2025.

Tenders for smart meters 
The Electricity Board has also decided invite tenders to supply smart meters, with the procedures in this regard starting on the e-tender website of the state government at 5 pm on July 30. Companies that can engage in distribution of smart meters, installation, system integration, operation and maintenance of smart meters and create head-end system software can apply. 

A pre-bid meeting will be organised on August 12 and bids may be submitted till September 9. Subsequently, technical bids would be opened on September 12. The company securing the contract should implement the project within 18 months and operate as well as maintain it for six years.

During the first phase, three lakh smart meters would be installed and the estimate for the project is Rs 217 crore. Smart meters would be installed for domestic consumers only in the second phase.

Minister admits talks on nuclear power plant in Kerala
Electricity Minister K Krishnankutty on Monday retracted his earlier statement denying talks about a nuclear power plant project in Kerala. “Discussions had indeed happened. But there is nothing to worry about it," the minister said in a statement. 

"Kerala is experiencing a severe power crisis. The state can only produce 30% of its required electricity domestically and is forced to purchase over 70% from external sources," he explained. 

Krishnankutty highlighted that the state spent Rs 13,280 crore on electricity purchases in the fiscal year 2023-2024. "Due to the increasing electricity costs, the KSEB Chairman and Managing Director have discussed with the Nuclear Power Corporation about the possibility of obtaining cheaper electricity," he said. 

“Kerala already purchases 266 MW of power from the Kudankulam power plant and receives electricity from other nuclear plants also. Discussions have been held about the state receiving a portion of excess power as an unallocated share from the Nuclear Power Corporation. Incidentally, the talks also included the possibility of establishing a nuclear power plant in the state. However, since such a project requires public cooperation and understanding, it will only proceed further once these concerns are addressed," the minister added.