Kerala is also set to execute the central decision to revise the electricity tariff every month as per the difference in production cost. Though the electricity minister asserted that the reform be implemented only after receiving legal advice, it can be expected at any time as no opportunity will be wasted to squeeze the consumers by increasing the rates.
If electricity rates change every month, people will have to pay exorbitant prices for electricity in Kerala, which is already one of the highest charging states in the country. The rate will be the highest in summer and lowest in rainy season. As the state receives more than six months of rain, it is indicated that relatively affordable rates will be charged from June to December. The rate will rise when more electricity has to be purchased from outside. Like the frequent changes in fuel prices, additional price will have to be paid for electricity in future.
As production and distribution of electricity in Kerala is a monopoly of the electricity board, things are always done as per their instructions. Consumers are forced to make arbitrary decisions as there are no competitors here to compete in this sector. The arbitrariness of the board can be ended only if the private sector and competition enters in production and distribution sectors.
Power Minister K Krishnankutty directed at the high-level meet held the other day that the expenses of the board should be reduced and to avoid the hike in rate as much as possible. The financial condition of the board is pathetic. The only task of the regulatory commission which was brought to control the board is to approve the demand for rate hikes, including surcharges, which are occasionally put forward to overcome excess expenses. The central directive is to levy surcharge every month. Surcharge means increase in price. Presently, this is calculated once a year and surcharge are levied from customers. The Centre's new proposal is to collect the applicable surcharge on a monthly basis. The approval of the regulatory commission is also not required to levy the surcharge. In short, the interests of the consumers will not be considered.
Since hydropower reaches its peak during rainy season, it is said the reform will be implemented in such a way that the rate will decrease during that period. However, looking at the practices of the electricity board so far, it is not even a remote possibility. It is not their fault that the electricity board can stay away from the new reforms as per the central directive, but it is to be seen whether the board is ready to check how the electricity minister's proposal to avoid rate hike can be implemented by controlling the cost. Earlier there was a move to charge different rates for day and night. Similarly, we will have to see the experiment of changing the rate in the rainy season and summer. The next prayer of the customers will be for rains in all twelve months of the year.