Electricity Minister K Krishnankutty described the hike as a necessary but modest measure, with a further increase of 12 paise per unit scheduled for 2025-26, taking the total tariff hike to 28 paise.
Published Dec 06, 2024 | 10:42 PM ⚊ Updated Dec 06, 2024 | 10:42 PM
The KSEB headquarters in Thiruvananthapuram. (Creative Commons)
Power got costlier in Kerala on Friday with the State Electricity Regulatory Commission approving an increase of 16 paise per unit, effective from December.
The state government issued an order on Friday, 6 December, formalising the increase, reportedly as part of a bid to address the Kerala State Electricity Board’s (KSEB) mounting financial crisis.
Electricity Minister K Krishnankutty described the hike as a necessary but modest measure, with a further increase of 12 paise per unit scheduled for 2025-26, taking the total tariff hike to 28 paise.
In a move to shield the most vulnerable sections of society, the government has exempted Below Poverty Line (BPL) households consuming up to 40 units per month from the tariff hike.
Similarly, old-age homes and orphanages, too, have been exempted. BPL households with cancer patients or differently-abled members, consuming up to 100 units per month, will also remain unaffected.
To extend benefits to more families, the connected load limit for these exemptions has been raised from 1,000 kilowatts to 2,000 kilowatts.
In addition to these exemptions, other targeted measures have been introduced to minimise the impact on various sectors. For the industrial sector, the tariff hike has been capped at a modest 1% to 2%, with no increase in fixed charges for small-scale industries operating with a load of up to 10 kilowatts.
Energy charges for these industries will rise by just 5 paise per unit. Moreover, small-scale industries will benefit from a 10% reduction in daytime electricity rates, which will help reduce overall costs.
Domestic consumers using more than 250 units of electricity per month will also see a 10% reduction in daytime rates, a move that could benefit around five lakh households. In the agricultural sector, the increase has been limited to just 5 paise per unit.
Efforts have also been made to support Kerala’s tourism sector, with farm stays in agriculture, dairy farming, and animal husbandry now being charged at domestic rates, aligning with the tariff structure for homestays. Private hostels will benefit from a significant tariff reduction of up to 30%.
Government-owned educational institutions and those directly operated by Kerala universities have been shifted to a special government institution tariff category, offering them favorable rates. Meanwhile, Endosulfan victims will continue to receive free electricity as before, ensuring their benefits remain untouched.
The state’s decision to implement these changes reflects an attempt to balance the need for financial recovery with the interests of consumers, especially vulnerable groups and key sectors.
As the revised rates take effect, the government hopes the carefully calibrated increases will help stabilize KSEB’s finances while minimising the burden on the public.
Earlier, when reports came that a tariff hike was in due, Leader of the Opposition VD Satheesan sharply criticised the move, alleging that ordinary citizens are being made to bear the brunt of the KSEB’s inefficiency.
He condemned the proposal to increase tariffs claiming that the KSEB’s financial mismanagement is to blame for its mounting debt.
The KSEB had earlier approached the Regulatory Commission with the proposals of a hike of 30 paise per unit for the fiscal year 2024–25, a summer tariff of 10 paise per unit from January to May 2025, and differential rates for day and evening consumption.
Through these revisions, the KSEB aims to generate ₹811.20 crore in 2024–25, ₹549.10 crore in 2025–26, and ₹53.82 crore in 2026–27.
Minister Krishnankutty has also hinted that a tariff revision might be unavoidable given KSEB’s financial position, though he assured that the government would work to prevent a steep burden on consumers.
However, the Commission had earlier conducted public hearings in September in Kozhikode, Palakkad, Ernakulam, and Thiruvananthapuram, during which consumer groups strongly opposed the proposed hike, particularly the introduction of the summer tariff.
At the same time, the hike has triggered sharp criticism from the Opposition, with both the Congress and BJP vowing to launch protests against the move.
KPCC President K Sudhakaran, MP, slammed the Pinarayi Vijayan-led government, terming ‘the fifth tariff hike’ during its tenure as “arrogant” and “a challenge to the people.”
He demanded an immediate rollback, accusing the government of poor planning, particularly regarding the cancellation of long-term electricity purchase contracts.
“From salt to camphor, prices are rising, and now the electricity hike is adding to people’s suffering,” Sudhakaran said.
The Congress has called for a statewide torchlight rally on Saturday against the hike.
Echoing similar sentiments, BJP state president K Surendran alleged that the government and the electricity board are “looting the people”.
He criticized the mismanagement within the board and warned of mass protests if the hike is not withdrawn.
“The government’s decisions lack vision, and both domestic and agricultural consumers are bearing the brunt of these repeated hikes,” he added.
It seems the electricity tariff hike is likely to become the new focal point of protest in the state.
(Edited by Majnu Babu).
