The state has decided to raise electricity tariffs in the state. KSEB wants to increase the current rate by Rs 2 per unit over the next five years. At present, the loss is Rs 8919 crore. In 2027, it is expected to rise to Rs 14054 crore. In the current financial year, an increase of one rupee per unit is expected. Thereafter, a tariff petition has been prepared to increase rates every year, for five years, so that the rate will be increased to Rs 2.30. By law, tariffs can only be increased with the approval of the Regulatory Commission. Therefore, the tariff petition has been submitted to the Commission. Due to strong customer opposition, some changes will be made. Yet, this rate hike will affect the consumer. The board has demanded the highest rate hike in a few years. The Electricity Board, one of the public sector undertakings synonymous for mismanagement, is not making any effort to increase power generation on its own. The main reason for the loss is the purchase and distribution of electricity from outside. The main reliance has been on hydropower projects, but, it is not enough to meet even twenty percent of the demand. We must depend on outside sources for the remaining 80 per cent and for that the heavy price must be paid.

While many states are reaping benefits by adopting non-conventional means of energy production, there are no such examples in Kerala . It is still interested in a few hydropower projects that may not receive approval. Also, there are no significant efforts to utilize central funds.

The board has not been successful in reducing transmission losses. The number of employees are increasing every year, along with expenditure on salaries and pensions. In addition to permanent employees, there are a large number of contract workers. The board has had about 7,000 permanent employees over the past ten years. Although the regulatory commission has recommended to decrease the number of staff, the board is reluctant to implement any of the core recommendations other than a rate hike.

Even when the new tariff petition was submitted, the board has mentioned about the reform measures it intends to implement in five years. The promise is that electricity rates will be rationalized by reducing transmission losses and financial losses. But these promises are not likely to be fulfilled. Plans worth over Rs 20,000 crore have been prepared to upgrade the supply chain and implement the smart meter project. If smart readers are implemented, the number of meter readers can be reduced . It is not sure whether the customer will have to bear the installation cost. The customer are already paying monthly meter rent for the meter purchased at their own expense. A smart meter can be costly.

The board will increase charges each year, if it fails to increase efficiency and reduce losses. The increase in fuel, electricity, water and transportation rates will further strain the family budget of the common man.