The Kerala State Electricity Regulatory Commission (KSERC) proposes an amendment to the tariff regulations whereby the repayment of both principal and interest on bonds issued to the master trust (pension fund) of the Kerala State Electricity Board (KSEB) will be reckoned for calculating the utility’s aggregate revenue requirement (ARR).
This has been a contentious issue. A section of electricity consumers argue that including the principal amount will pass on the hefty burden of its repayment to the consumers through the electricity tariff.
The Commission intends to hold a public hearing on the proposed amendment before finalising its decision.
