The Kerala State Electricity Regulatory Commission (KSERC) will hold a public hearing on Tuesday on a proposal to remove the 10 paise per unit cap on fuel surcharge that can be levied on electricity bills.
The hearing will be held online at 11 a.m., the commission said.
Through a change in its conditions for setting tariff regulations, the commission seeks to remove the “cap” it introduced in 2023. Fuel surcharges are levied by the Kerala State Electricity Board (KSEB) on consumer bills primarily to recover additional expenditure on purchasing electricity.
The ceiling of 10 paise per unit was initially introduced by the Commission to protect the interests of electricity consumers.
The commission proposed the amendment based on a policy directive issued by the Kerala government on November 21, which seeks to meet the conditions prescribed for “Fuel and Power Purchase Cost Adjustment (FFPCA)” in the Union Power Ministry’s Electricity (Amendment) Rules, 2022. Specifically, the policy directive issued under Section 108 of the Electricity Act sought removal of the maximum limit per unit per month to 10 paise. Section 108 requires the Commission to follow written policy directions from the State Government on matters of public interest.
The state government’s policy direction came after the Union government revised guidelines for states availing additional borrowing of 0.5% of their gross state product (GSDP).
In its draft amending regulations, the Commission was of the opinion that the continuation of the ceiling limit is no longer necessary. It found that “fuel surcharge rates are in line with actual changes in the cost of purchasing fuel and energy and that the conditions that justified the introduction of the cap have improved substantially”.
Published – 22 Dec 2025 16:10 IST
