Kerala Prepares for Electricity Tariff Hike Following Conclusion of Model Code of Conduct

With the expiration of the current electricity tariff hike set for June 30, Kerala is gearing up for a potential increase in electricity rates after the conclusion of the Model Code of Conduct (MCC) for the Lok Sabha election. The last tariff hike, implemented in November 2023, will come to an end, prompting the regulatory commission to take action in setting new rates for the state. KSEB had previously sought permission from the Regulatory Commission to determine rates from April 1, 2023, to March 31, 2027, but an interim order was issued instead, fixing the rates until June 30 of this year.

While KSEB had proposed a 40 paise increase, the interim order saw an average increase of 20 paise. However, the commission is not yet prepared to finalize the new rates due to the ongoing model code of conduct. The decision on tariff revision will involve consultation with consumers before implementation. Additionally, the state government has agreed to cover Rs 750 crore of KSEB’s losses in FY 2022–23. However, the board faces financial challenges due to increased power consumption and the cancellation of low-cost power contracts, leading to a need for careful consideration of the tariff hike decision.