The Kerala State Electricity Board (KSEB) is currently facing monthly losses of Rs 120 crore after limping back from the pandemic. The board could manage to stay afloat during this period just because of the surplus power being sold through the power purchase agreement (PPA).
If the tariff was increased by 7.32 per cent in 2019, now the board is expected to put forth a proposal before the Kerala State Electricity Regulatory Authority (KSERA) for at least a 12 per cent hike to rebound from the losses.
The regulatory authority need not approve the board’s proposal. It will be holding public hearings with stakeholders from across the state for at least two months before the revised tariff rate is announced by the end of March leading to the new rates coming into effect from April 1.
During the 2017-18 period, the regulatory authority had approved the board’s loss at a whopping Rs 6,864 crore.