Kochi: Significant discrepancies have been uncovered in the Kerala State Electricity Board’s (KSEB) electricity tariff calculations. A mismatch exists between the audited financial data for the 2023-24 fiscal year and the figures presented by KSEB to the Kerala State Electricity Regulatory Commission (KSERC) in its tariff hike petition.
As per the audited financial statements, KSEB’s total expenditure for the year stood at Rs 22,336.49 crore, with electricity sales recorded at 2,569.80 crore units. This equates to an actual cost of Rs 8.69 per unit. However, in its petition, KSEB reported the average cost of supplying electricity as Rs 7.32 per unit—a difference of Rs 1.37 per unit, translating to an understated cost of Rs 3,520.62 crore.
The board’s underreporting of costs has enabled it to propose a moderate tariff hike, avoiding a more significant increase that would reflect the actual expenditure. Once the smaller hike is approved, KSEB can later file a ‘true-up petition’ to recover the actual costs, often in the form of fuel surcharges. This approach allows the board to raise tariffs incrementally without public scrutiny, eventually leading to significant rate increases for consumers over time.
Audited data reveals further discrepancies. While KSEB’s income for 2023-24, including fixed charges, averages Rs 8.39 per unit, the Regulatory Commission has approved a tariff of only Rs 6.90 per unit. This disparity highlights the hidden costs borne by consumers and raises questions about transparency in the board’s financial practices.
The findings have sparked concerns about the fairness and accuracy of electricity pricing, prompting calls for stricter oversight of KSEB’s financial submissions and tariff proposals.
