Power tariffs in Kerala likely to see revision

KSEB may seek hike between 8% and 10%; fresh tariff orders likely to come into effect from April 1, 2022

The Kerala State Electricity Regulatory Commission (KSERC) has finalised and published regulations for determining electricity tariffs.

With the notification of the Kerala State Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) Regulations, 2021, stage is set for a power tariff revision from April next year.

Indications are that the Kerala State Electricity Board (KSEB) will seek a tariff hike ranging between 8% and 10%, although a decision is yet to be finalised on this point. The regulations require the KSEB to submit the Aggregate Revenue Requirement (ARR) and tariff proposals by December 31.

Fresh tariff orders are likely to come into effect from April 1, 2022, as the term of the prevailing tariffs ends on March 31.

Once the KSEB submits its proposals, the Commission will hold public hearings before finalising a decision.

The regulations now notified cover a block of five financial years, or control period, starting from April 1, 2022, to March 31, 2027, under the multi-year tariff framework (MYT). The KSEB and other distribution licencees are expected to file proposals for each year separately under this system.

A mid-term performance review will be held in 2024-25, according to the regulations.

Senior KSEB officials said the proposals were under preparation, but indicated that the State power utility was likely to seek a hike between 8% and 10% this time.

Power tariffs were last hiked on July 8, 2019. On March 19 this year, the Commission had extended the validity of the retail supply tariffs from April 1, 2021, to March 31, 2022, or until new tariffs were declared, whichever comes earlier.

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