In filing fresh tariff revision proposals, the Kerala State Electricity Board (KSEB) has recommended time-of-day (ToD) metering and billing for prosumers, saying that the present billing method is causing “significant revenue loss” for it.
Carrying implications for solar prosumers, the proposal is part of a modified tariff revision petition for the financial years from 2024-25 to 2026-27 filed this month before the Kerala State Electricity Regulatory Commission (KSERC).
As per KSERC (Renewable Energy and Net Metering) Regulations, 2020, ToD metering and billing applies to prosumers with connected load of and above 20 kW. Normal metering is applicable for connected loads below 20 kW.
‘Modifications required’
According to the KSEB, the prevalent billing methods require “substantial modifications.” As a possible solution, the KSEB has suggested ToD metering and billing for all prosumers irrespective of the connected load with modifications in the pricing percentage.
‘Prosumers’ are electricity consumers who produce electricity from solar and other renewable energy sources and sell it to the grid.
“Almost all the prosumers hardly pay any energy charge (usually they pay fixed charge and meter rent) due to excess generation than usage, especially during the summer season. Additionally, these consumers tend to use energy extravagantly, regardless of (consumption) time zones,” the power utility noted.
According to the KSEB, the present system entails a financial burden of ₹310 crore annually for it. It noted that solar prosumers ‘bank’ energy costing approximately ₹2.50 per unit and withdraw this banked energy during peak hours when energy costs are high. To meet this commitment, the KSEB is forced to buy power from the market at an average price of ₹9 during peak hours.
Excess energy
KSEB argues that since daytime electricity demand is lower and energy cannot be stored, it is forced to absorb the excess energy injected into the grid by prosumers by surrendering already tied-up power. “It may be noted that, this will increase further due to the exponential addition of solar power in the grid under net metering facility,” it said.
The KSEB petition also cautioned that, ultimately, the “ordinary consumers of the State” are at the receiving end of this issue. “Solar power plants are generally installed by people with high electricity consumption and better financial status. Any shortfall in revenue to KSEB due to benefits provided to them will be passed on to other common consumers,” it said.
The KSEB proposal would require amendments to the KSERC (Renewable Energy and Net Metering) Regulations, 2020. The Regulatory Commission finalises its decisions on tariff proposals after holding public hearings.
