'Kerala shock'; Electricity tariff hike to be announced on Dec 4

THIRUVANANTHAPURAM: The stage is all set for the third electricity tariff hike since the start of second Pinarayi government in 2021. The announcement is likely to be made on Wednesday after the meeting between the Electricity Regulatory Commission and Chief Minister Pinarayi Vijayan.

If the Chief Minister suggests any relaxation, it will be duly followed. If the Wednesday meeting gets postponed, the announcement will be made on Thursday. The commission's decision was to be announced on Monday but was changed because some figures submitted by KSEB officials demanded clarification. The meeting with the CM will be held after completing this process.

The rate hike details will first reach Electricity Minister K Krishnankutty. KSEB has given permission to maximize profit by imposing an average increase of 34 paise on the current rate, an additional rate in summer and a special rate for night consumption.

If the rate is increased as per KSEB’s instruction, there will be an additional income of 812.16 crores this year, 1399.93 crores next year and 1522.92 crores in 2026-27. If the summer tariffs get accepted, the revenue of Rs 111.08 crores will be made this year, 233 crores next year and 349 crores in 2026-27.

Many states including Tamil Nadu and Karnataka are providing subsidy benefits to the people but not Kerala. Electricity Minister K Krishnankutty said that it is necessary to hike power tariffs 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.