Thiruvananthapuram: The Kerala State Electricity Board (KSEB) has received approval from the Kerala State Electricity Regulatory Commission (KSERC) to levy an additional fuel surcharge of 9 paise per unit for January 2025. This move aims to recover the liabilities incurred due to the surge in power purchase costs between April and September 2024.
This surcharge comes on top of the automatic fuel surcharge of 10 paise per unit that KSEB has been collecting since April 2023. A similar 9-paise surcharge was already implemented in December 2024. KSEB had originally petitioned KSERC for an additional surcharge of 17 paise per unit, citing a deficit of ₹37.47 crore. However, after assessment, KSERC determined the shortfall to be ₹21.70 crore, significantly less than KSEB’s estimate.
The rising power purchase costs, driven by factors such as coal shortages, outages, and transportation expenses, exceeded the KSERC-approved rates. For instance, power from the Ramagundam Super Thermal Power Plant was procured at rates as high as ₹4.163 per unit in July 2024, compared to the approved rate of ₹2.92.
With this added surcharge, KSEB aims to address its financial gap, but the burden ultimately falls on consumers already grappling with increasing electricity expenses. Consumers have expressed concerns over the growing electricity costs, which have been steadily increasing due to recurring surcharges. With energy prices fluctuating and infrastructure challenges persisting, the additional financial burden raises questions about the long-term stability of electricity tariffs in the state. Experts have urged the KSEB and regulatory authorities to explore sustainable measures to mitigate future cost escalations.
