In the first case, the fuel surcharge will be refunded to electricity consumers in the state. Monthly billing consumers will be refunded 2 paise per unit and bi-monthly consumers 1 paise per unit through their bills for March, according to the Kerala State Electricity Board (KSEB).
According to KSEB, the reduction in cost of purchase of power from thermal power plants in January 2026 is passed on to consumers through refund.
KSEB marked the refund as a first for the state-owned power utility. Although the refund provision was in place, the power company has so far collected the fuel surcharge from consumers only with reference to the additional expenditure on purchase of electricity. The thermal fuel surcharge on electricity bills is intended to compensate for the fluctuating costs of purchasing electricity.
Currently, the fuel surcharge is collected from electricity consumers under the automatic cost recovery mechanism enabled by the Kerala State Electricity Regulatory Commission (Conditions for Tariff Determination) (First Amendment) Regulations which came into effect in 2023.
In a statement, Electricity Minister K. Krishnankutty said the refund follows a gradual reduction in the amount collected as surcharge over the past few months. In February, KSEB exempted monthly billing consumers from paying surcharge and reduced it to 4 paise per unit for bimonthly billing consumers. Saturday’s decision is expected to bring relief to common electricity consumers, Mr. Krishnankutty said.
The minister said that for the first time in its history, KSEB has been able to extend such a benefit to consumers through effective intervention and proper planning.
Published – 28 Feb 2026 21:18 IST
