The Kerala State Electricity Regulatory Commission (KSERC) on October 22, 2026, has issued the Kerala State Electricity Regulatory Commission (Multi Year Tariff) Regulations, 2026, applicable throughout Kerala to KSEB Ltd.’s generation, transmission and distribution business units, other generating companies, energy storage system developers, captive users, transmission and distribution licensees, electricity grid users and the State Load Despatch Centre (SLDC). The regulations establish a five-year control period from April 1, 2027, to March 31, 2032, for determining Aggregate Revenue Requirement (ARR), tariffs, fees and charges. Regulation 58 and Annexure 3 will come into force from April 1, 2027, while the remaining provisions take effect from publication in the State Official Gazette.
All covered entities must file their ARR and tariff determination petitions for the control period, along with the required capital investment plans, by November 30, 2026, and submit petitions for truing up FY 2025–26. Annual truing-up petitions are required by November 30 of each financial year during the control period, while the Mid-term Performance Review must be filed by November 30, 2029. The framework provides for prudence checks, adjustment of gains or losses arising from controllable and uncontrollable factors, and sharing of approved gains from controllable factors, with one-third passed on to consumers. It also provides for liquidation of existing regulatory assets and surpluses by March 31, 2031, through a regulatory asset surcharge, and requires tariff proposals to address matters such as time-of-day tariffs, demand-based fixed charges, open-access surcharges, wheeling charges, demand response programmes and optional green tariffs. Failure to file the prescribed petitions within the stipulated period may lead the Commission to initiate proceedings under Section 142 of the Electricity Act, 2003.
[Notification No. 1010/Con.Engg/ 2026/ KSERC]
