KSEB Adds Thermal Fuel Surcharge on January Electricity Bills to Cover Extra Power Costs
January 2, 2026
The Kerala State Electricity Board (KSEB) announced a thermal fuel surcharge on electricity bills this January. Bimonthly-billed consumers will pay 7 paise more per unit, while monthly-billed consumers will pay 8 paise extra per unit.
This surcharge covers an additional ₹18.45 crore spent on power purchases in November 2025. The extra costs came from fuel price changes affecting 18 power stations, including 12 Central stations and six independent producers.
KSEB is allowed to collect this fee under a cost-recovery rule issued by the Kerala State Electricity Regulatory Commission (KSERC) in 2023. The commission caps the surcharge at 10 paise per unit to prevent surprise increases in electricity bills.
However, the KSERC, following a state government direction, proposed removing this 10 paise cap. It held a public hearing on December 23 to discuss this change. The final decision is still pending.
This surcharge helps KSEB manage extra costs due to varying fuel prices without major tariff hikes for consumers.
Read More at Thehindu →
Tags:
Kerala State Electricity Board
Thermal Fuel Surcharge
Electricity Bills
Power Purchase
Fuel Price Variation
Electricity Tariff
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