The Kerala State Electricity Regulatory Commission has approved a power tariff hike of 16 paise per unit, effective December 2024. This revision comes amidst the financial challenges faced by the Kerala State Electricity Board (KSEB). A further increase of 12 paise per unit has been sanctioned for the 2025-26 financial year, culminating in a total hike of 28 paise per unit over two years.
The tariff hike does not affect Below Poverty Line (BPL) families using up to 40 units of electricity, nor does it apply to orphanages, old age homes, or households with cancer patients or differently-abled members consuming up to 100 units monthly. These exemptions aim to cushion vulnerable groups from the financial impact.
Minister K Krishnankutty highlighted that the tariff revision was necessary to address KSEB’s financial deficit. However, KSEB’s initial request for a higher increase was moderated by the regulatory commission. Solar energy users in Kerala will see a 10% reduction in daytime electricity rates, benefiting around five lakh households consuming up to 250 units per month.
The revised tariff also provides relief to industries and private hostels. Small-scale industries with a load of 10 kilowatts will experience a marginal hike of only 5 paise per unit, alongside a 10% reduction in daytime rates. Private hostels will benefit from an average 30% reduction in tariffs.
Key regulatory decisions include no hike for commercial consumers or meter rents, domestic rate application for farm stays, and maintaining free electricity for Endosulfan victims. With these changes, the government aims to balance financial recovery with consumer protection and renewable energy promotion.
