Regulatory Commission drafts multi-year tariff rules to ease consumer burden

THIRUVANANTHAPURAM: The Kerala State Electricity Regulatory Commission has released a draft of multi-year tariff regulations aimed at reducing the burden of frequent and steep electricity tariff hikes on consumers. The draft has been issued as the existing 2021 tariff regulations are set to expire in March 2027. The commission will consider public feedback before issuing the final order. The new tariff regulations are expected to come into effect from April 2027.

At present, electricity tariffs tend to rise when the cost of power procurement increases. The draft includes measures to reduce power procurement costs and promote energy storage. The regulatory commission believes these measures could help minimise the burden on consumers when tariffs are revised.

The draft also focuses on improving the efficiency, accountability and quality of service of electricity licensees, while ensuring greater scrutiny of capital investments. All these factors will be considered while revising tariffs. The draft has also taken into account changes in the power sector, new regulations and policies of the Central government.

Tariff framework for pumped storage and BESS

• The draft proposes a tariff framework for energy storage systems, including Battery Energy Storage Systems (BESS) for solar power and pumped storage systems for hydropower projects.
• It also includes demand-based fixed charges, Time-of-Day (ToD) tariffs, peak tariffs supported by energy storage and green tariffs.
• The draft has been published on the commission's website for public comments. Online comments can be submitted after registration at www.erckerala.org before September 18, while comments by post or email can be submitted until September 25.

KSEB seeks approval to buy power at higher rates

The Kerala State Electricity Board (KSEB) has approached the regulatory commission seeking approval to purchase power at higher rates through various short-term contracts from September 1 to May 15, 2027. The board plans to purchase between 200 MW and 500 MW at different times. Several companies have quoted rates of up to Rs 9.99 per unit. The KSEB board of directors decided to procure power from companies including Tata Power, NTPC, PTC and RPG, citing the possibility of reduced rainfall due to El Niño conditions.