The Kerala State Electricity Regulatory Commission (KSERC) has rejected a Kerala State Electricity Board (KSEB) plea for the introduction of a new ‘‘summer tariff’’ on the grounds that it constituted “an amendment to the normal tariff revision” and went against the provisions of the Electricity Act, 2003.
A summer tariff of 10 paise per unit for electricity consumption from January to May every year from 2024-25 to 2026-27 had been a major component of the tariff proposals submitted by the KSEB in August. The tariff was to be levied “in addition to the normal retail tariff increase,” according to the proposal.
In rejecting it, the commission observed that though the name is summer tariff, it is not meant to meet the additional cost of power purchase during the summer months, but to bridge part of the unbridged revenue gap of the KSEB till 2026-27. As such, the proposed summer tariff is an amendment to the normal tariff revision, which is not permitted under Section 62(3) of the Electricity Act, for bridging the revenue gap, the commission noted.
Through this special tariff, the KSEB had planned to raise ₹111.08 crore in 2024-25, ₹116.34 crore in 2025-26 and ₹122.08 crore in 2026-27. The KSEB proposal had drawn considerable flak from consumers at the public hearings on the tariff proposals.
The commission also did not allow a KSEB proposal for introducing time-of-day (ToD) tariffs for prosumers on the grounds that it would require amendments to the commission’s Renewable Energy and Net Metering Regulations. The commission said it was in process of revising the regulations and asked the KSEB to present its demand during consultations with stakeholders.
Published – December 06, 2024 10:34 pm IST
