Power tariff likely to be hiked, summer tariff also under consideration, says minister

PALAKKAD: Electricity Minister K Krishnankutty said that it is necessary to hike power tariff in the state and that a special tariff is being considered. Buying electricity from outside during the summer is in crisis. The minister clarified that the summer tariff is being considered to overcome this.

'The drop in domestic production has been a setback. Therefore, an increase in electricity rates is necessary. Once the Regulatory Commission completes the evidence collection regarding the rate increase and submits the report to KSEB, a decision will be taken after considering it. A policy decision will be taken after discussing with the government and consumers. The rate increase will be without causing any harm to consumers. Introducing a summer tariff is also being considered,' said the minister.

Meantime, the state regulatory commission is likely to announce the new electricity tariff today. KSEB has demanded an average increase of at least 34 paise per unit. KSEB estimates that there is an income of 1950 crores and an expenditure of 1750 crores per month. 900 crores are needed just to buy electricity from outside. 300 crores should also be found for loan repayment. The board said that they will face a loss of more than two thousand crores annually.

However, the regulatory commission estimates a loss of 1370.09 crores this year, 1108.03 crores next year and 1065.95 crores in 2026-27. The tariff revision will be based on this. If the tariff is increased as KSEB says, there will be an additional revenue of 812.16 crores this year, 1399.93 crores next year and 1522.92 crores in 2026-27. If the summer tariff is also approved, there will be an additional revenue of 111.08 crores this year, 233 crores next year and 349 crores in 2026-27.