Kochi: The decision to charge a higher tariff for electricity consumption during peak hours at night has caused unease among customers of Kerala State Electricity Board Limited (KSEBL). The Council plans to introduce a surge pricing model in Kerala even as it rakes in profits by selling electricity out of state at high margins.

Electricity bills for every household in Kerala will increase exponentially if the KSEB decides to increase the charge by 20% for electricity consumed during rush hour – from 6:00 p.m. to 10:00 p.m. If 50 for hundred more are taken during peak hours, the tariff would be Rs 6 per unit.

The electricity tariff for a common household consumer averages Rs 4 per unit.

Electricity consumption is high in most homes between 6 p.m. and 10 p.m. There would be no gain for consumers even if a 25 percent reduction is granted during off-peak hours, some experts noted.

The other day Kerala Energy Minister K Krishnankutty alluded to the imposition of a higher electricity tariff for electricity consumption between 6 p.m. and 10 p.m. when demand reaches its peak. maximum.

Since this is a matter of policy, the final decision would only be made after discussion with the chief minister and other ministers, Krishnankutty said.

What is dynamic pricing
Dynamic pricing is a pricing strategy in which flexible prices are set for products or services based on current market demands. It is also referred to as surge pricing, on-demand pricing, or time-based pricing.

Isn’t KSEB a profiteer?
The utility has already charged a higher tariff even though it was making millions of rupees selling electricity outside. He had sold electricity to the tune of Rs 161.36 crore even in October, at a time when the country was reeling from a severe coal shortage that was affecting thermal power generation in the country.

Incidentally, the KSEB bought electricity for Rs 12.05 crore during this period. The board, which sold electricity for 65.17 crore rupees until November 17, had to pay only 39.68 lakhs rupees during the same period.

Even in October, hit by the crisis, the KSEB had to spend Rs 9.58 per unit on average for one unit. However, the Council maintained that the electricity was purchased up to Rs 18.

The Commission had rarely purchased electricity for Rs 18 per unit.

The KSEB, incidentally, has benefited from the recent excessive rainfall in Kerala, as more electricity has been produced in its hydropower projects.

Double standard
KSEB, which sells electricity out of state for Rs.3 to 3.50 per unit during peak hours, charges Rs 9.48 per unit to consumers using more than 500 units.

The Commission’s justification is that it distributed electricity, purchased at Rs 18 per unit, at a lower rate within the State. The sale of electricity is for different windows of 15 minutes each in the electricity exchange, and the price will not be uniform for all time slots. The KSEB does not have the power to buy or sell electricity for more than Rs 20 units, even in the event of an acute shortage.

It was pointed out that the discom could charge more per unit of power consumed overnight before even installing smart meters. The Council already imposes high tariffs for domestic energy consumption of more than 500 units.

The high rate is billed according to the time of day (TOD) system. Three-phase meters of household consumers could calculate TOD usage, and digital meters could be set for this purpose.