Electricity tariffs in Kerala should be revised



KSEB can request an increase between 8% and 10%; new tariff decrees likely to come into force as of April 1, 2022

The Kerala State Electricity Regulatory Commission (KSERC) finalized and published regulations to determine electricity tariffs.

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

There are indications that the Kerala State Electricity Board (KSEB) will request a tariff increase of between 8% and 10%, although a decision has not yet been finalized on this point. The regulations require the KSEB to submit Aggregate Revenue Requirements (ARRs) and rate proposals by December 31.

New tariff orders are expected to come into effect on April 1, 2022, with the term of the tariffs in effect ending on March 31.

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

The regulations now notified relate to a block of five years, or control period, from April 1, 2022 to March 31, 2027, within the framework of the multiannual tariff framework (MYT). KSEB and other distribution licensees are expected to submit proposals for each year separately under this system.

A mid-term performance review will take place in 2024-25, in accordance with regulations.

Senior KSEB officials said the proposals were in the works, but said the state power company would likely look to increase between 8% and 10% this time around.

Electricity tariffs were last increased on July 8, 2019. On March 19 of this year, the Board extended the validity of retail supply tariffs from April 1, 2021 to March 31, 2022, or until that new tariffs be declared, whichever comes first. .



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