In a first, fuel surcharge to be refunded to KSEB consumers

In a first, fuel surcharge will be refunded to electricity consumers in the State. Monthly-billed consumers will be refunded 2 paise per unit and bi-monthly consumers, 1 paise per unit, through their bills for March, according to the Kerala State Electricity Board (KSEB).

The reduction in power purchase costs from thermal power stations in January 2026 is being transferred to the consumers through the refund, according to the KSEB.

The KSEB termed the refund a first for the State’s power sector. Although the refund provision existed, so far the power utility has only collected fuel surcharge from the consumers, citing additional expenditure on power purchases. Thermal fuel surcharge on electricity bills is meant to offset fluctuating power purchase costs.

At present, 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.

Electricity Minister K. Krishnankutty said in a statement that the refund follows a gradual reduction in the amount collected as surcharge over the past few months. In February, the KSEB had exempted monthly-billed consumers from paying the surcharge and reduced it to 4 paise per unit for bimonthly-billed consumers. Saturday’s decision is expected to bring relief to ordinary electricity consumers, Mr. Krishnankutty said.

The Minister said that the KSEB has been able to extend such a benefit to consumers for the first time in its history through efficient intervention and proper planning.