Kerala Electricity Regulatory Commission publishes draft tariff regulations for 2027-32
Kerala's draft tariff regulations aim to ensure consumer benefits through greater electricity sector efficiency and cost reductions, with revised methodologies for O&M and energy storage tariffs.
Kerala's draft tariff regulations aim to ensure consumer benefits through greater electricity sector efficiency and cost reductions, with revised methodologies for O&M and energy storage tariffs.
Kerala's draft tariff regulations aim to ensure consumer benefits through greater electricity sector efficiency and cost reductions, with revised methodologies for O&M and energy storage tariffs.
The Kerala State Electricity Regulatory Commission (KSERC) has published the draft Tariff Regulation 2026, proposing a new regulatory framework for the five-year period beginning in the 2027-28 financial year. The draft seeks to ensure that consumers benefit fully from greater efficiency and cost reductions in the electricity sector. The existing 2021 Tariff Regulations will expire at the end of the 2026-27 financial year.
The proposed regulations include measures to improve the efficiency, accountability and service quality of the Kerala State Electricity Board (KSEB), along with incentives for timely completion of projects. They also propose measures to promote efficient energy storage and reduce power procurement costs.
The methodology for determining operation and maintenance (O&M) costs in the transmission and distribution sectors has also been revised. The existing flat-escalation method would be replaced with a normative and benchmark-based approach linked to business growth and actual CPI-WPI indices. A comprehensive framework has also been proposed for determining tariffs for energy storage systems, including Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSPs).
The draft takes into account developments in the power sector since the 2021 regulations, along with regulations issued by the Central Electricity Regulatory Commission (CERC), the Central Electricity Authority (CEA) and rules framed by the Union government. It also considers CEA’s O&M norms for distribution utilities, its advisory note on BESS, Supreme Court and Appellate Tribunal orders on the liquidation of regulatory assets, and suggestions received at the 42nd State Advisory Committee meeting.
Those wishing to participate in the consultation process must register through the link provided on the Commission’s website by September 18. The public can submit comments by email to kserc@erckerala.org or by post to the Secretary, Kerala State Electricity Regulatory Commission, KPFC Bhavanam, C.V. Raman Pillai Road, Vellayambalam, Thiruvananthapuram – 695 010.
Comments sent by email or post will be accepted until 5 pm on September 25. For registration-related queries, the Commission’s help desk can be reached at 0471-2735544 during office hours.