T'puram: Kerala State Electricity Regulatory Commission (KSERC) has dismissed allegations that the power tariff in Kerala was unjustifiably high. In the latest tariff revision order announced last week, KSERC said the average tariff for agriculture, industries and domestic consumers, who use up to 100 units/month, is the lowest among south Indian states.
Referring to a report published by REC (a Maharatna company under the administrative control of the ministry of power) in June 2024, KSERC said that even commercial tariff in Kerala was low, next only to Karnataka. At the same time, the tariff for domestic consumers, who use over 500 units/month, is slightly higher in Kerala. KSERC justified this charge difference saying that a higher rate is charged to meet the cross-subsidy requirements of low-end domestic consumers.
The average daily consumption of 84 lakh domestic consumers (80% of the total domestic consumers) is less than 8.5 units. This means that 80% of the users consume under 250 units/month.
At public hearings, stakeholders were raising the argument that the power tariff in the state is the highest, without evaluating facts and published information... Some state govts offer budgetary subsidies over tariff determined by SERCs. But allowing subsidy or not is the prerogative of the govts concerned and SERCs have no authority to intervene in such govt policies, it said in its order.
KSERC has approved KSEB's request to install time of day (TOD) meters at homes of domestic consumers using over 250 units/month and it will be applicable to 7.9 lakh consumers. KSEB will have to spend Rs 20 crore for the installation of TOD meters and the cost would be recouped from consumers as meter rent.
Though KSERC announced a 10% reduction in tariff rate for these consumers from 6am to 6pm, they will have to contribute 25% extra money for the power they use from 6pm to 10pm. Of the 7.9 lakh consumers, 5 lakh are already using TOD meters. As per KSERC order, KSEB should replace the existing 2.9 lakh meters with TOD meters by April 1, 2025.