THIRUVANANTHAPURAM: Government has cancelled the subsidy given to consumers following the hike in electricity rates. The subsidy given to consumers who use up to 120 units per month has been withdrawn. The electricity minister has warned that the tariff will have to be increased every year and people should prepare for it.

When KSEB collects the electricity duty from the consumers, they deduct the amount given as electricity subsidy to the consumers from the bill. This is the amount that used to be paid to the government. However, the government has issued a notification now that the entire amount should be paid. The electricity bills of many consumers will go up if the subsidy is removed.

The average subsidy was 85 paisa per unit for those using up to 120 units per month. The subsidy was at the rate of 35 paisas for the first 40 units and 50 paisas from 41 to 120 units. Those who use at least 100 units in a month used to get an average subsidy of Rs 44, which is now gone. With this, those who use up to 50 units will have to pay Rs 10 more. The subsidy that has been withdrawn has been in effect for the past 10 years.

At the same time, electricity rates were increased in the state yesterday, bringing darkness to the people who are already struggling with the price hike. The average increase is up to 20 paise per unit. The rate increase does not apply to those who are using less than 40 units per month. There will be a 20 percent rate hike for those using 100 units. It is reported that the water rate will also be increased following the electricity rate hike.

There will be a five percent rate hike from April 1. The water authority will make a recommendation to the government in February regarding the increase in charges. This is according to the condition put forward by the central government to raise the borrowing limit. From April 2021, the basic tariff will be increased by five percent. The central recommendation is to continue this every year.