Thiruvananthapuram, 19 Oct (H.S.): Revised electricity tariffs and a surcharge to recover the Kerala State Electricity Board’s accumulated losses will take effect from April 1, 2027, under a new policy notified by the State Electricity Regulatory Commission.

The policy will guide tariff determination for five years, from 2027–28 to 2031–32. It provides for recovering ₹5,000 crore in past losses through a surcharge spread over four years, adding to consumers’ electricity bills.

For industrial consumers, the surcharge will be linked to the fixed charge component of their bills. Other consumer categories will face a percentage-based levy.

The framework also expands the scope of fuel surcharges. Besides additional expenditure under long-term power purchase agreements, costs arising from short-term and emergency electricity purchases can be passed on to consumers without the commission’s prior approval.

However, direct recovery through the fuel surcharge will be subject to a ceiling of four per cent of the average electricity price. The provision follows Central rules intended to enable faster recovery of additional procurement costs.

Another significant change concerns peak consumption hours. The existing evening peak period, from 6 p.m. to 10 p.m., will be extended until 11.30 p.m.

The policy recommends installing time-of-day meters across more consumer categories to enable higher tariffs during peak hours. Lower rates are proposed between 8 a.m. and 6 p.m., and from 11.30 p.m. to 8 a.m.

Domestic fixed charges should be determined according to connected load, while tariffs should reflect electricity supply costs, consistent with the Supreme Court’s directions, the policy states.

It also recommends attractive payments for households that install electricity storage systems and supply stored power to the grid at night.

The eventual impact on individual bills will depend on category-specific tariff decisions, with the loss-recovery surcharge, fuel adjustments and extended peak-hour pricing together shaping consumers’ expenditure under the forthcoming five-year tariff framework from April.

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Hindusthan Samachar / Arun Lakshman