Power tariffs raised, Domestic consumers face nearly 5% rise in monthly costs

The Kerala State Electricity Regulatory Commission (KSERC) has approved an interim order that will lead to an average 3.8 percent increase in power tariffs for low tension (LT) consumers and a 3.2 percent average increase for high tension (HT) industrial consumers. These new tariffs are set to take effect from November 1 and will remain in place until July 30, 2024. Among LT consumers, the domestic and agricultural sectors will experience the most significant increases. For domestic consumers, who make up a majority at 76 percent of the total electricity consumers in Kerala, there will be a 4.7 percent hike. This will raise the average tariff for domestic consumers from the current Rs 5.13 per unit to Rs 5.37 per unit.

One of the most substantial increases will be seen in the LT Agriculture category, with an average tariff rising from Rs 3 per unit to Rs 3.20 per unit, marking a 6.5 percent increase. The previous tariff revision in June 2022 had resulted in a 6.6 percent tariff hike across all segments. The adjustment is expected to help the Kerala State Electricity Board (KSEBL) collect approximately Rs 734.58 crore over the nine-month period spanning from November 2023 to July 2024, with Rs 336.63 crore anticipated from domestic consumers alone. The KSEBL had initially sought to generate Rs 1243.64 crore through the revision, but the KSERC reduced this amount to Rs 734.58 crore due to identified irregularities in the public utility’s Annual Revenue Requirement (ARR) submission. Had the KSEBL’s request been fully granted, power bills could have surged by 7.4 percent.

In response to the interim order issued by the KSERC, power tariffs in Kerala are set to rise, impacting both LT and HT consumers. Among LT consumers, the domestic and agricultural sectors will bear the brunt of the increase, with domestic consumers facing a 4.7 percent hike, and agricultural users experiencing a 6.5 percent rise. This adjustment aims to help the Kerala State Electricity Board collect significant revenue over a nine-month period, albeit at a reduced amount compared to their initial request due to identified irregularities in their submission.