Electrictiy will be dearer by 30% in Kerala, with the State Electricity Regulatory Commission notifying the highest tariff hike in 10 years. It is the first time in the last one decade that a tariff hike has been imposed on the domestic sector. The new rates are applicable with retrospective effect from July 1. They will be valid until March 31, 2013. A surcharge of R20 has been clamped on single-phase connections for consumption in excess of 40 units; in the case of three-phase connections, it would be R60. The hike in tariff is also effective for street lighting, the commission’s notification said.

For industrial units, the fixed charge has been raised from R45 to R60. Unit tariff too has been revised from R3.25 to R4.25. For agricultural connections, the fixed charge payable has been retained at R6, but unit charges have been revised from R0.65 to R1.50. In the case of high-tension and extra-high tension consumers, the demand charge has been raised from R270 to R300. The unit charge goes up from R3 to R4.10.

Due to the 40% drop in rainfall, the hydel power-dependent Kerala is at a loss to feed its power demand. Thermal power costs over nine times that of hydel power. Thus Kerala State Electricity Board (KSEB) has resorted to buying 150 megawatts per day from NTPC?s Rajiv Gandhi Combined Cycle Power Project (RGCCPP) Kayamkulam. Everyday, this means an additional financial burden to the tune of R3.3 crore for the Board at the rate of R9.6 per unit.

Sources said the State Electricity Regulatory Commission (KSERC) had been ready with the revised rates for some weeks, but was under pressure from Oommen Chandy government to keep the announcement in abeyance, till the Assembly session ended on Wednesday.