Fuel surcharge formula revamped in Keralam’s power sector; new ‘regulatory asset surcharge’ also gets nod

The surcharge levied on electricity bills in Keralam is set to undergo major changes from 2027-28 onwards with significant consequences for consumers.

The fuel surcharge will be calculated not just in terms of the long-term power purchase agreements of the distribution licencee (in Keralam’s case, chiefly the Kerala State Electricity Board (KSEB)), as is done now, but in terms of the total energy procured from all sources including long, medium and short-term purchases.

A new regulatory asset surcharge (RA surcharge) will be levied on electricity bills over a four-year period as part of a decision to liquidate the regulatory assets of distribution licencees including that of the KSEB by March 31.

Tariff regulations

The measures are part of the Kerala State Electricity Regulatory Commission’s multi-year tariff regulations for the five-year ‘control period’ from 2027-28 onwards. They will take effect on April 1, 2027.