Kerala: KSEB to continue to levy surcharge on November electricity bill

Thiruvananthapuram: The Kerala State Electricity Board (KSEB) decided to continue the surcharge that has been charging for electricity in the state for the next month as well. The surcharge was introduced in lieu of a sharp hike in electricity rates. In the month of April, KSEB started trying to make up for the revenue loss by charging a surcharge of 9 paise per unit. Later, it was raised to 19 paise.

On June 1, it was decided to impose an additional surcharge of ten paise per unit, in addition to the existing nine paise that had been in place until then. With this the KSEB was collecting a total surcharge of 19 paise per unit. Notably, KSEB had applied to increase the surcharge to 44 paise per unit. However, the surcharge increase was executed in compliance with the rule that allows the board to impose a maximum surcharge of 19 paise without seeking approval from the Regulatory Commission.

The Regulatory Commission had granted permission for the continuation of the nine-paisa surcharge until October on October 4. 

Meanwhile, the government has decided to direct the Regulatory Commission to restore the cancelled long-term electricity contract for 465 MW. The government is restoring the contract cancelled by the Regulatory Commission, citing procedural lapses using special powers under the Electricity Act. The decision was taken in view of the acute power crisis.

Earlier, the Electricity Regulatory Commission cancelled the long-term contract with KSEB. The contract for 465 MW was cancelled due to technical issues and lapses in procedures. However, due to the sudden loss of 465 megawatts and reduced rainfall, the board was in dire straits. Even the Chief Minister criticised the action of the commission. Finally, the government intervened by accepting the KSEB demand. The action is under Section 108 of the Electricity Act, which empowers the government to intervene in policy matters.