The Kerala State Electricity Regulatory Commission (KSERC) has published the draft Tariff Regulation 2026, proposing a new regulatory framework for the state’s electricity sector for the five-year period beginning with the 2027–28 financial year.
The proposed framework seeks to ensure that consumers benefit from greater efficiency and any cost reductions achieved across the electricity sector. The existing 2021 Tariff Regulations are due to expire at the end of the 2026–27 financial year.
The draft regulations propose several measures aimed at improving the efficiency, accountability and service quality of the Kerala State Electricity Board (KSEB). They also include incentives for the timely completion of projects and provisions intended to encourage more efficient energy storage while helping reduce power procurement costs.
A significant proposed change concerns the methodology used to determine operation and maintenance (O&M) costs in the transmission and distribution sectors. Instead of the existing flat-escalation method, KSERC proposes a normative and benchmark-based system linked to business growth as well as actual Consumer Price Index (CPI) and Wholesale Price Index (WPI) movements.
The draft also introduces a comprehensive framework for determining tariffs for energy storage systems. This includes both Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSPs), reflecting the growing role of storage in the electricity sector.
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KSERC said the draft takes into account developments in the power sector since the 2021 regulations, as well as regulations and directions issued by national-level authorities. These include the Central Electricity Regulatory Commission (CERC), the Central Electricity Authority (CEA) and rules framed by the Union government.
The proposed regulations also consider the CEA’s O&M norms for distribution utilities and its advisory note on BESS. In addition, KSERC has taken into account relevant orders of the Supreme Court and the Appellate Tribunal concerning the liquidation of regulatory assets, along with suggestions received during the 42nd meeting of the State Advisory Committee.
The publication of the draft marks the beginning of the consultation process. Stakeholders and members of the public who wish to participate must register through the link provided on the KSERC website by September 18.
Comments and suggestions can be submitted by email to kserc@erckerala.org or by post to:
The Secretary
Kerala State Electricity Regulatory Commission
KPFC Bhavanam
C.V. Raman Pillai Road
Vellayambalam
Thiruvananthapuram – 695 010
Email and postal submissions will be accepted until 5 pm on September 25.
For queries related to registration, KSERC’s help desk can be contacted at 0471-2735544 during office hours.
The proposed tariff regulations will ultimately shape the regulatory framework for Kerala’s electricity sector from 2027–28 to 2031–32, making the consultation process an important opportunity for consumers, utilities and other stakeholders to respond to the proposed changes.
