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The rates will be lower for those using below 3 kilowatts. Varied tariffs will apply to commercial and domestic consumers.
KSEB would be forced to impose load-shedding in summer if power is not purchased from external sources.
The agreements were quashed by ERC last May, citing procedural lapses to purchase electricity at the rate of Rs 4.29 per unit.
Electricity Minister K Krishnankutty announced no further actions should be taken regarding the already issued notices in this regard.
It will be implemented with retrospective effect from November 1.
Kerala Electricity Regulatory Commission has issued an order citing current tariff will continue; KSEB had proposed an average increase of upto Rs 41 paise per unit.
On Friday, KSEB in its official Facebook page also urged the consumers to cooperate with the board by limiting the consumption from 7 pm to 11 pm.
In first phase, smart meters will be installed on premises of industrial and commercial consumers
The official sources hinted that a high-level meeting is scheduled for September 4 to analyse the power crisis in the state.
He further said insufficient rainfall and rising power consumption have pushed the state into its current situation.