Power tariff hike likely in Kerala by November 1

Thiruvananthapuram: The Kerala government is likely to hike electricity charges in accordance with the Kerala State Electricity Board's (KSEB) recommendations before November 1. However, the proposed tariff hike for power consumption during summer is likely to be reconsidered, pending a review of its legal validity.

The Kerala State Electricity Regulatory Commission (KSERC) will soon seek the opinion of its State-level advisory council, which includes representatives from both the KSEB and consumer groups, in a meeting scheduled right after Onam. Following this, the KSERC will formally ask KSEB to respond to consumer complaints raised during recent public hearings.

KSEB proposed the regulatory commission to hike the overall power tariffs by 30 paise on an average in 2024-25, and in particular, a move to introduce a 'summer tariff' of 10 paise per unit for consumption during January-May “in addition to the normal retail tariff increase.”

Meanwhile, the chairman and members of the Regulatory Commission, along with other experts, will carefully analyse the tariff petition submitted by KSEB, the concerns voiced by consumers, and the legal standing of the proposal to finalise their decision on the rate hike.

Since the KSEB’s tariff revision recommendations are based on an income-deficit report previously approved by the Regulatory Commission, there are less chances for any significant reduction in the rates.

In 2022, the Regulatory Commission had rejected KSEB's proposal for a five-year multi-year rate revision, approving it instead for only one year. In 2023, it similarly turned down a four-year rate revision proposal, limiting its approval to eight months. This time, the KSEB has recommended a three-year revision period, from July 1, 2024, to March 31, 2027. Currently, the lowest tariff rate stands at Rs. 3.25 per unit.

Second phase likely to be delayed
In a letter issued to KSEB on May 16, the Regulatory Commission directed to submit a tariff revision recommendation for the period up to 2027. However, the commission had previously directed KSEB to submit its performance report for 2023-24 by November 30. As a result, the decision on the tariff revision for 2025-26 may be postponed until this report is analysed.

When the previous tariff hike period ended on June 30, the existing rates were extended until the end of this month. Given that the latest tariff revision is unlikely to be finalized by then, the current rates are expected to be extended once again until the new notification is issued.