Solar prosumers demand a stop to “illegal collection” of fixed charge by KSEB

Solar prosumers have approached the State Electricity Regulatory Commission seeking an immediate stop to the “illegal collection” of fixed charge from them by the Kerala State Electricity Board (KSEB).

In a detailed petition to the Commission, prosumers have also demanded that the KSEB refund to them the excess amount retained by it as security deposit. The Commission has scheduled a hearing on the two demands, filed by six prosumers in a joint petition, on August 27.

According to the prosumers, until November-December 2022, the KSEB was levying the fixed charge solely on their monthly energy imports from the grid. Subsequently, the power utility began calculating it based on “total monthly consumption” This is unfair since it includes not just the energy imported by prosumers but also the portion of self-generated solar power used for their own consumption. This has been done without any authorisation from the Commission, prosumers allege.

Fixed charge is the fee levied by the KSEB to cover the cost of the infrastructure required for the supply of power. But prosumers argue that in the case of a roof-top solar plant installed and operated by a prosumer, the KSEB makes no such investment. Laws and regulations also do not permit the levy of fixed charge on energy generated and used by consumers for their own purpose, they said.

Given that all investments and operational expenses are borne by the consumer himself along with any subsidy from the Government of India, it is unfortunate that the KSEB is burdening roof-top solar consumers with unlawful charges, instead of offering incentives for encouraging the RE generation,” the prosumers said. Prosumers have urged the Commission to ensure that the KSEB refund the excess fixed charge collected from the rooftop solar prosumers with penal interest.

In the case of the security deposit, prosumers argue that they are eligible for a drastic reduction since they generate ample solar power and, consequently, their dependence on KSEB supply is “nominal.” Moreover, there is security deposit requirement for consumers with prepaid meters. The absence of prepaid meters in the State is the failure of KSEB, the prosumers pointed out.