Industry opposes Kerala’s power tariff hike  

BL Kochi Bureau | | Updated on: Jun 28, 2022

Engineers inspect electric transmission lines at Adani Power Company thermal power plant at Mundra in the western Indian state of Gujarat September 24, 2012. As global mining giants scale back their ambitions in Australia's coal sector, Indian billionaire Gautam Adani is showing no such caution and plans to push full-steam ahead with a $4.5 billion project in a bet on rising Indian demand. Picture taken September 24, 2012. To match Interview INDIA-ADANI/ REUTERS/Amit Dave (INDIA - Tags: BUSINESS ENERGY) | Photo Credit: AMIT DAVE

Tariffs have been increased by 6.6 per cent for all categories of consumers; for high-end industrial consumers it has been raised by 11 to 12 per cent

The Kerala High Tension-Extra High Tension Industrial Electricity Consumers’ Association has objected to the power tariff hike announced by the Kerala State Electricity Regulatory Commission, saying that it is not industry friendly and will push up electricity bills in the sector.

Tariffs have been increased by 6.6 per cent for all categories of consumers; for high-end industrial consumers alone, the hike would be 11 to 12 per cent, which is almost double, said the Association.

The Indian Chamber of Commerce and Industry pointed out that the proposed hike is not justifiable even as the Regulatory Commission praised KSEB for its professional management of reservoirs. Vikas Agarwal, Chamber president, said the hike would affect the post-Covid recovery in business.

The KSEB’s move to shift from net metering to gross metering was a blatant use of its “monopolistic power”. Consumers have invested lakhs in capital intensive panels to seek deferred benefits over years. A change in the calculation mechanism is equivalent to going back on the agreed terms of contract, he said.

The board is looking at a surplus in the future given that solar adoption is picking up pace at rapid speed. The board should wait for at least a year or two, and then consider a hike depending on the supply position then, he added.

Published on June 28, 2022
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