One-year lock-in period will apply for green tariff, says KSEB

The Kerala State Electricity Regulatory Commission had fixed 77 paise per unit as the green tariff for 2023-24 for consumers who opt for renewable energy purchased from the KSEB or smaller licensees. This tariff comes over and above the normal energy charge

A lock-in period of one year, during which cancellations will not be accepted, will be applicable to electricity consumers who opt for the new ‘green tariff,’ according to the Kerala State Electricity Board (KSEB).

The KSEB has made this clear in the norms for implementing the green tariff published last week. Under this condition, consumers opting for the tariff (77 paise per unit) must avail themselves of green energy for a minimum of one year. The application for green tariff will get automatically renewed for the next financial year, unless the consumer cancels it. To opt out of the tariff, the consumer has to inform the licencee three months in advance.

Revising the power tariffs in the State in October, the Kerala State Electricity Regulatory Commission had fixed 77 paise per unit as the green tariff for 2023-24 for consumers who opt for renewable energy (from sources such as hydro, solar and wind) purchased from the KSEB or the other smaller licensees.

No fuel surcharge

This tariff is a premium that comes over and above the normal demand charge/fixed charge and energy charge. ‘Green energy patrons’ availing themselves of the tariff will be issued a ‘green energy certificate’ by the KSEB. Further, fuel surcharge will not apply to the quantum of renewable energy purchased by the consumer.

However, the KSEB can withhold the non-transferable green energy certificate if the consumer has defaulted on power bill payments. “Green power status shall not be given or continued to such consumers with arrears of electricity charges due to the (power distribution) licensee,” the KSEB said.

The commission had introduced the green tariff after consumers such as Tata Consultancy Services, State Bank of India, and the Airports Authority of India expressed their willingness to buy green energy from the KSEB.

Software changes

For rolling out the new tariff, the KSEB is making changes in its billing software to accommodate the billing of green energy. Also, to meet the demand for green energy, the utility has directed the Deputy Chief Engineer (Commercial) to keep tabs on availability and, if necessary, make arrangements for its procurement. The tariff of 77 paise comprises the additional cost of purchasing renewable energy power (62 paise) and banking charges (15 paise).