Violation of tariff conditions: KSEB fines for renting flats as ‘private’

The Kerala State Electricity Board (KSEB) has frowned on the practice of renting out short-term apartments – “private cottages” in KSEB parlance – to customers through booking apps. This is because such rentals constitute a violation of electricity tariff conditions, as apartments fall under the domestic category, while private cottages fall under the commercial category with a higher tariff, power company officials said on Monday.

Following inspections at flats in the Kazhakootam area, the Anti Power Theft Squad (APTS) fined three consumers totaling a little over ₹10.71 million. Now, KSEB is planning to extend the checks all over Kerala.

After being alerted, inspections were carried out as per the instructions of the security officer of the power company, N. Rajan. Mr Rajan said that the KSEB team had booked the rooms through the booking app. “A password is issued to the customer, which is used to unlock the room. In this particular case, they charged ₹4,000 for two hours,” he said. Inspections were conducted by the Thiruvananthapuram and Kollam APTS units.

“Private Lodges” fall under Low Tension VII (Commercial) along with Private Hostels, Private Guest Houses, Private Rest Houses and Private Travelers’ Bungalows. The tariff plates are higher compared to the plates for the Low Tension – I (domestic) category, which includes flats used for living.

Mr. Rajan said that the KSEB is planning to extend the inspections all over Kerala.

While issuing tariff orders on December 5, 2024, the State Electricity Regulatory Commission found that “lakhs of houses/apartments owned by NRIs and high net worth individuals who own multiple houses remain mostly unoccupied or under-occupied”. However, details of these consumers such as their connected load and monthly electricity consumption were not readily available in KSEB. Taking note of this, the commission directed KSEB to submit details of “mostly unoccupied houses”, including their connected load and monthly consumption for the previous three years.

Published – 06 Jul 2026 18:13 IST