THIRUVANANTHAPURAM: The Kerala State Electricity Board (KSEB) is all set for a major change in the way electricity bills are calculated, with the Electricity Regulatory Commission publishing crucial draft guidelines for revising electricity tariffs for the next five years. The draft will form the basis for KSEB’s application regarding the electricity tariffs to be charged from April 1, 2027, to March 31, 2032. After seeking public opinion, the final regulations will be published, paving the way for the tariff revision.
The draft proposes extending differential time-based electricity tariffs to more consumers, with lower rates during the daytime when solar power is readily available and higher rates during peak nighttime hours when electricity consumption is high. At present, the Time-of-Day (ToD) metering system applies only to consumers using more than 250 units per month. The proposal seeks to extend this system to a larger number of consumers in order to control excessive electricity consumption during peak hours.
The draft also recommends recovering from consumers, starting in 2027, the huge losses incurred by KSEB up to 2024 through the purchase of electricity from outside sources. This is based on a Supreme Court directive requiring the losses to be recovered before 2031. If implemented, this would naturally lead to an increase in consumers’ electricity bills.
Other proposals in the draft include replacing the existing slab-based fixed-charge system with a fixed charge calculated according to total electricity consumption, collecting the fuel surcharge accurately every month, and offering reduced tariffs during peak hours to consumers who have solar power systems equipped with battery storage. The commission has also recommended giving greater importance to electricity storage projects, reducing the cost of power procurement, and obtaining prior approval for long-term and medium-term power purchase agreements. The public can submit their comments and suggestions on the recommendations in the draft until September 25.