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The Hindu
The Hindu
National
The Hindu Bureau

Power tariffs revised in Kerala, Electricity Regulatory Commission gives nod for average hike of 20 paise per unit

The Kerala State Electricity Regulatory Commission on Thursday issued interim orders revising the power tariffs, including that of the domestic category, for an eight-month period from November 1 this year to June 30, 2024.

The Commission has allowed an average increase of only 20 paise per unit in the tariffs overall, although the Kerala State Electricity Board (KSEB) had sought 40.6 paise per unit. For domestic consumers with monthly consumption up to 250 units, the Commission has allowed a maximum increase of 20 paise.

The new per-unit tariffs for the domestic category in the telescopic and non-telescopic slabs are as follows: Telescopic: 0-40 units (₹ 1.50 - no change); 0-50 units (₹ 3.25), 51-100 units (₹ 4.05), 101-150 units (₹ 5.10); 151-200 units (₹ 6.95); 201-250 units (₹ 8.20). Non-telescopic: 0-300 units (₹ 6.40); 0-350 units (₹ 7.25); 0-400 units (₹ 7.60), 0-500 units (₹ 7.90); and above 500 units (₹ 8.80).

The revised fixed charges for the domestic category is as follows (single phase and three phase rates in brackets): 0-40 units (nil ); 0-50 units (₹ 40 and ₹ 100); 51-100 units (₹ 65 and ₹ 140); 101-150 (₹ 85 and ₹ 170); 151-200 (₹ 120 and ₹ 180); 201-250 (₹ 130 and ₹ 200); 0-300 (₹ 150 and ₹ 205); 0-350 (₹ 175 and ₹ 210); 0-400 (₹ 200 and ₹ 210); 0-500 (₹ 230 and ₹ 235); and above 500 units (₹ 260 and ₹ 260).

Through the tariff revision, the KSEB will generate an additional annual revenue of ₹532.50 crore, which include ₹453.13 crore from the low tension (LT) consumer category and ₹ 79.38 crore from the high tension/extra high-tension categories. Through its own proposals, the power utility had hoped to generate ₹929.82 crore.

For small industries, the average hike is 18 paise per unit, and for the HT and EHT industries, 12 paise each. The tariffs, on an average, will go up by 21 paise for government hospitals and government educational institutions, 20 paise for agriculture, and 18 paise for railway traction.

Exempted categories

The tariff remains unchanged at ₹1.50 per unit for BPL category domestic consumers with a connected load of up to 1,000 watts and up to 40 units of monthly consumption. The tariffs also remain unchanged for IT industries, orphanages and old age homes, families with endosulfan victims, and BPL families with cancer patients or members with permanent disabilities due to polio or accidents provided the connected load is below 1,000 watts.

In February, the KSEB had submitted multi-year tariff (MYT) proposals for the financial years from 2023-24 to 2026-27. For the time being, the Commission has issued only an interim order for an eight-month period. The Commission will finalise the tariffs from July 2024 onwards after examining the income and expenditure of the KSEB for 2022-23.

The Commission rejected a KSEB proposal to move domestic consumers in the 200-250 unit category from the telescopic to non-telescopic slab.

The Commission noted that the KSEB could not provide “convincing reasons” for such a shift, adding that the existing slabs will be retained as such. The Commission also put off taking a decision on the KSEB’s plea to change the time-of-day (ToD) tariff structure, saying that it “may require detailed appraisal and analysis.” The existing ToD tariff structure will continue for all ToD-billed consumers in the State.

Electricity tariffs in Kerala were last revised in the State in June, 2022. After their validity expired on March 31 this year, the Commission had extended it in stages up to October 31. A writ petition regarding the KSEB pension fund in the High Court also had forced the Commission to put off issuing the tariff orders.

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