Thiruvananthapuram: Kerala State Electricity Regulatory Commission has proposed a new five-year tariff framework that could bring lower daytime rates to more consumers while allowing KSEB to recover a long-pending revenue gap from consumers. The draft Kerala State Electricity Regulatory Commission (multi-year tariff) Regulations, 2026, issued on Aug 24, would cover the control period from April 1, 2027 to March 31, 2032. The draft proposes expanding time-of-day and time-of-use tariffs to encourage consumers to use power during periods of lower demand and higher solar generation.Under the proposed system, the day would be divided into three zones: 8am to 6pm when solar power is generally available; 6pm to 11.30pm which is the peak-demand period and 11.30pm to 8am the off-peak period. Tariffs would be lower during solar and off-peak hours and higher during the evening peak period.The tariff structure would be based on demand in each time block, the generation mix and the cost of supply. The objective is to reduce pressure during peak hours and improve the use of renewable energy and the power network.The draft proposes allowing KSEB to recover the revenue gap and past losses accumulated up to March 31, 2024, along with interest. The recovery would begin in 2027-28 and be made in four equal instalments by 2030-31. The exact amount and surcharge would be determined after the commission considers the accounts for 2023-24.The surcharge would apply uniformly to all consumer categories and all distribution licensees. The draft also includes automatic monthly adjustment of fuel and power purchase costs, subject to annual review. It provides for green tariffs, energy storage, demand response and performance-linked incentives.The proposed monthly fuel and power purchase cost adjustment would apply uniformly across Kerala, except for domestic consumers with connected load up to 1,000W and monthly consumption up to 40 units. The adjustment would be subject to annual truing-up by the commission. The draft also includes safeguards against sudden tariff increases. Licensees may defer the adjustment for up to two billing cycles, while higher adjustments would be subject to additional regulatory scrutiny.The draft introduces a tariff framework for battery, pumped and other energy storage systems, including community and collective storage. Storage projects could receive tariffs for peak-hour support and demand-response services. It proposes minimum round-trip efficiency norms of 85% for battery storage and 75% for pumped storage, with specified availability requirements. The commission has invited objections and suggestions from stakeholders until Sept 25, 2026.
