Thiruvananthapuram: In a move set to bring relief to electricity consumers across Kerala, the Kerala State Electricity Board (KSEB) has announced a reduction in electricity charges for February, with the fuel surcharge entirely waived for monthly-billed consumers. This adjustment is expected to lower the monthly electricity bills for households and small businesses, providing some financial breathing space amid rising living costs. The decision comes as part of KSEB’s regular tariff revision process, aimed at ensuring consumers pay fairly for fluctuations in power procurement costs while maintaining the financial health of the utility.
For monthly-billed consumers, the absence of any fuel surcharge marks a significant decrease from January, when surcharge rates varied between seven and eight paise per unit depending on the consumer category. Introduced to reflect fluctuations in the cost of power purchases, the fuel surcharge ensures that consumers contribute proportionally to additional costs incurred by the board, particularly from market purchases of electricity. By temporarily waiving this surcharge, KSEB is passing on cost savings directly to households and businesses, making the February bills noticeably lighter.
Bi-monthly billed consumers, however, will still see a nominal fuel surcharge of four paise per unit in February. This represents a considerable reduction compared with previous months, when the surcharge had been higher due to increased power purchase costs. The adjustment reflects KSEB’s practice of calculating the fuel surcharge based on actual expenditure data for the previous month, ensuring transparency and fairness in billing. Such monthly recalibrations are part of regulatory norms set by the Kerala State Electricity Regulatory Commission (KSERC), which permits utilities to recover genuine variations in generation and procurement costs without burdening consumers unnecessarily.
KSEB’s announcement provides significant financial relief for electricity users, especially for households with medium and high consumption levels. By suspending the fuel surcharge for monthly consumers and drastically reducing it for bi-monthly ones, the board ensures that the benefits of reduced power procurement costs are directly reflected in consumer bills. This is particularly crucial in the context of rising household expenses and inflationary pressures, where any reduction in recurring costs can help ease the financial burden on residents.
The fuel surcharge mechanism itself is a dynamic pricing tool allowed under KSERC regulations. It is designed to recover variations in costs for power generation and procurement, including purchases on the short-term electricity market, without impacting the utility’s ability to maintain steady operations. When procurement costs fall or stabilize, as in February, the surcharge can be waived or reduced, directly benefitting consumers. This flexibility ensures that electricity bills remain reflective of actual costs while protecting the utility’s financial sustainability.
Overall, the waiver and reduction in fuel surcharge for February 2026 is a welcome measure for Kerala electricity consumers, translating into direct savings on monthly bills and enhancing affordability. Households and businesses can now expect to pay less this month, while KSEB continues to balance cost recovery with consumer-friendly policies. The move underscores the importance of dynamic tariff mechanisms in managing electricity pricing in a fair and transparent manner.