A Kerala State Electricity Board (KSEB) proposal to implement a one-time settlement scheme (OTS-2023) for recovering arrears has received the nod from the Kerala State Electricity Regulatory Commission.
The scheme will be open from July 20 to December 30 this year, the commission said in an order on Thursday. Consumers with arrears for more than two years can apply.
The KSEB proposed OTS-2023 after arrears accumulated to a whopping ₹3,260.09 crore as of March 31, 2023.
Under the scheme, they will be eligible for reduced rates of interest instead of the 18% normally levied by KSEB on arrears. The interest rate will be as follows: arrears older than 15 years (4%), arrears between five years and 15 years (5%), arrears older than two years and below five years (6%).
Consumers can remit the entire principal amount and the total reduced interest in one lumpsum. In such cases, they will be eligible for a rebate of 2% on the interest (total reduced interest amount).
They can also remit lumpsum the principal amount along with the first instalment of the interest. Or, they can pay the principal amount with simple interest in 12 installments. Arrears under litigation can also be settled under OTS-2023 subject to conditions.
In its petition to the Commission, the KSEB had noted that the OTS scheme for 2022 had failed to achieve its aim, largely due to the short period of the scheme. The KSEB proposed the scheme for 2023 responding to requests for consumers who sought another opportunity for a settlement.
In Thursday’s order, the Commission has also directed the KSEB to review the progress of the scheme on a monthly basis and offer target-based incentives to section offices, sub division and division offices and circles for recovery of arrears.
