Home power bills set to soar by 8% to 10%

85 lakh domestic consumers constitute about 78% of the consumer base

Energy bills of all consumers, mainly consumers in the domestic sector, are likely to go up by 8% to 10% soon.

The Cabinet is likely to take a call soon on the revised tariff submitted for its approval by the Kerala State Electricity Regulatory Commission.

The proposed tariff is learnt to have left commercial consumers largely untouched. Eighty-five lakh domestic consumers, who constitute about 78% of the consumer base of the Kerala State Electricity Board and consume about 50.04% of the power distributed in the State, will have to bear a major burden of the hike.

Power sector sources told

The Hindu that 6% low-tension commercial consumers, who contribute 10% of the total profit of the board, may go largely untouched since they are already being made to cough up heavily for the power they draw.

Resource crunch

If taxed further, they would naturally explore other profitable options, mainly the open access route, and that would further push the cash-strapped board into a deep fiscal crisis. The board has made a capital expenditure of ₹1,900 crore for enhancing its transmission infrastructure and a host of other projects and is now grappling with a grave resource crunch.

The power generated in the State could only meet 15% of the domestic requirement and 85% is being sourced at a prohibitive cost.

Since power generating companies are in the red, the Reserve Bank of India has imposed curbs on banks advancing funds to the power sector. These curbs have crippled the functioning of the board since it could not avail itself of overdraft or other facilities from financial institutions, sources said.

A suo motu tariff revision effected by the commission in April 2017 had drawn the flak of consumers and board alike. Domestic consumers expressed their ire over the additional burden imposed on them and the board protested that it was inadequate to meet its liabilities, mainly repayment of a ₹1,400-crore loan.

The board had not filed its annual revenue returns with the commission from 2011 to 2017 and its revenue gap was pegged at ₹6,686 crore.