KSEB to collect 7 paise per unit as fuel surcharge from bimonthly-billed consumers in January

The Kerala State Electricity Board (KSEB) will collect 7 paise per unit from bimonthly-billed consumers and 8 paise per unit from monthly-billed consumers as thermal fuel surcharge on electricity bills in January.

The surcharge is meant to recover ₹18.45 crore spent additionally on power purchases in November 2025 on account of the variations in the price of fuel used in power-generating units.

The surcharge being collected in January is on account of the variations in the spending on power purchases from 18 generating stations, including 12 Central generating stations and six independent power producers, according to the KSEB.

Cap of 10 paise

Fuel surcharge is collected from electricity consumers under an automatic cost-recovery mechanism permitted by the Kerala State Electricity Regulatory Commission (Terms and Conditions for Determination of Tariff) (First amendment) Regulations which came into effect in 2023. To avoid tariff shock, the commission has set 10 paise per unit as the maximum monthly surcharge amount that can be collected under the regulations.

However, following a State government policy directive, the State Electricity Regulatory Commission had proposed removing the cap on the surcharge collected by the KSEB. The commission had held an online public hearing on its amendment proposal on December 23. The final decision on this matter is awaited.