Power tariff hiked in Kerala despite UDAY

Our Bureau Thiruvananthapuram | Updated on January 15, 2018 Published on April 18, 2017


The 10- to 50-paise hike per unit in power tariff announced yesterday in Kerala has come at a time when the UDAY scheme that it recently joined had envisioned no such hike in 2017 or 2018.

The scheme had provided for a five-per cent hike in tariff only in 2019, according to a tripartite agreement signed by the Union Power Ministry, the state government and power utility KSEB Ltd.


But the Kerala State Electricity Regulatory Commission went ahead with the hike, mainly targeted at the domestic consumers, ranging from 10- to 30 paise per unit for those who consume less than 250 units per month and 40- to 50 paise for those consuming more.

The revised tariffs are effective today. The State Regulatory Commission went ahead with the proposal despite the KSEB Ltd having made no such demand.

Power tariff was last revised in the state in 2014. The Commission observed that the three revisions in 2012, 2013 and 2014 had failed to contain the cumulative revenue deficit of Rs 4,944 crore.


The Commission expects that the latest revision would help the utility mop up additional revenues of Rs 550 crore in 2017-18.

Combined with the surplus of Rs 491 crore, the additional revenues being raised would help it bring down the deficit by Rs 1,041 crore, the Commission reckoned.

Meanwhile, BPL consumers with less than 1,000 watts in connected load and with consumption not exceeding 40 units have been exempted from the latest tariff hike.

Fixed charges for single phase connection have been revised from Rs 20 to Rs 30, while that for the three-phase connection goes up from Rs 60 to Rs 80.


The agriculture sector, which is bearing the brunt of successive droughts, has been spared from the hike.

Low tension (LT) and high tension (HT) categories who already pay more than 120 per cent of the average cost of supply have also been spared from a hike in tariff.

There will be no hie either for industrial connections with up to 10 kilo watts of connected load.

Energy charges for LT 4-A category has been increased by 30 paise per unit while for those in the IT industry, the hike being effected will be to the extent of 20 paise per unit.

Railway Traction Energy Charge for Kochi Metro has been reduced from Rs 5.10 per unit to Rs 4.80 per unit. The tariff for public lights and traffic signals has been hiked from Rs 3.60 per unit to Rs 4.10 per unit.

Published on April 18, 2017
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