Kerala State Electricity Regulatory Commission seeks seven years for liquidating KSEB’s revenue gap of ₹6,645.3 crore

The Kerala State Electricity Regulatory Commission (KSERC) has informed the Appellate Tribunal for Electricity (APTEL) that seven years are needed for liquidating the unbridged revenue gap of the Kerala State Electricity Board (KSEB), amounting to ₹6645.3 crore, without causing tariff shock to the consumers.

On August 29, APTEL had directed all State Electricity Regulatory Commissions to file affidavits containing details of regulatory assets and revenue gaps of power distribution companies (DISCOM) along with roadmaps for the liquidation of regulatory assets and revenue gaps latest by March 31, 2028.

In an affidavit to APTEL, the Commission said that if the revenue gap of ₹6645.3 crore is to be liquidated by March 31, 2028, the Commission would have to impose a surcharge of “above ₹1 per unit on all consumers, including the subsidised categories” in the State. This could result in tariff shock for electricity consumers, it said.

The Commission said it has also decided to submit an application before the Supreme Court seeking a “maximum period of seven years for liquidating the unbridged revenue gap as on March 31, 2024.”

The Supreme Court, in an August 6, 2025 judgment, had reduced the time limit to four years.

However, the Commission noted that a clarification is required in this matter. Rule 23 of the Electricity (Amendment) Rules 2024 notified by the Union Power Ministry in January 2024 allows up to seven years for liquidating the unbridged revenue gap.

Further, the Commission said that a part of the past regulatory gap needs to be liquidated through revenue surplus of the KSEB in the coming years. The KSEB had reported a revenue surplus of ₹680.47 crore in 2024-25. This can be adjusted against the revenue gap. The Commission said it expects that the KSEB would have “adequate revenue surplus” to mitigate part of the revenue gap in 2025-26 as well.