Another 'shock' for consumers: Regulatory asset surcharge to be collected from 2027 to 2031

THIRUVANANTHAPURAM: A decision was reached to collect KSEB's liability of Rs 5,000 crore from consumers. It will be collected in instalments from April 1, 2027 to 2031. This is the 'Regulatory Asset Surcharge' in the draft rules released by the Regulatory Commission for the tariff revision for the next five years.

The loss till 2024 is Rs 6,645 crore, but a small amount has already been collected. The remaining amount will be calculated and informed to the Commission. This will be examined, and a decision will be made on how much surcharge to be levied per unit. Evidence will be collected before this.

If the cost of purchasing electricity is more than what is allowed by the Commission, it will be charged as a surcharge in the next bills. A maximum of 10 paise is levied per unit. When the regulatory asset surcharge increases, the bill amount will increase again.

Fixed charge will also increase

Currently, the fixed charge is levied based on the connected load (sanctioned load). With the advent of smart meters, the fixed charge will be based on the maximum load used (recorded maximum demand) and will likely increase.