India
Kerala sets Rs 5,000 crore power surcharge path
The Hindu·
Kerala's electricity regulator published multi-year tariff rules for 2027-28 onwards on October 17, 2026. A Fuel and Power Purchase Cost Adjustment Surcharge will count purchases from all sources, not only long-term deals. A regulatory asset surcharge will liquidate about ₹5,000 crore of KSEB assets by March 31. That surcharge will run from 2027-28 through 2030-31 for KSEB consumers.
Prism
What It Means For You
- From April 1, 2027, monthly power bills can reflect fuel costs from all purchase sources under FPPAS.
- Domestic consumers with connected load of and below 1,000 Watts and monthly use of and below 40 units are exempt from FPPAS.
- KSEB consumers face a new regulatory asset surcharge across four years starting 2027-28.
What's Happening
- The Kerala State Electricity Regulatory Commission published the multi-year tariff regulations on October 17, 2026.
- The old thermal fuel surcharge formula is replaced by the Fuel and Power Purchase Cost Adjustment Surcharge.
- Officials said the changes track the Centre's Electricity (Amendment) Rules, 2022.
What The New Surcharges Cover
- KSEB's regulatory asset for liquidation is put at roughly ₹5,000 crore.
- Demand-based billed consumers will see the RA surcharge as a percentage of the tariff invoice.
- Other consumers will see a mix of a rate per kW per month and a percentage of energy charges.
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