The Kerala State Electricity Regulatory Commission (KSERC) has recommended that the Kerala State Electricity Board (KSEB) explore dynamic pricing for electricity used by all domestic consumers. This move could diminish the advantages currently enjoyed by households with rooftop solar units.
Impact on Prosumers
If implemented, the recommendation might prevent prosumers—those who generate their own solar power—from swapping the electricity they produce during the day for the higher-cost power supplied by KSEB at night. Under the current system, prosumers can offset their nighttime consumption with the solar power they feed into the grid during daylight hours.
Proposed Pricing Structure
The commission has suggested that all consumers should be charged a lower rate for electricity used during daytime, specifically during solar hours, while a premium price should be applied for power consumed at night. This marks a significant shift from the existing tariff structure.
Currently, domestic consumers with Time-of-Day (ToD) meters and small-scale industrial units receive a 10% discount on electricity. The ToD meter is mandatory for those consuming more than 250 units per month. Under the ToD tariff, electricity prices are higher during nighttime hours.
Feasibility Study Ordered
The KSERC has directed the KSEB to conduct a detailed study on the feasibility of these proposals and submit a report within two months. Additionally, the commission has requested a comprehensive analysis of the changing consumption patterns in Kerala, with a report due in three months.
Reasons Behind the Proposal
The push for higher peak-hour pricing is driven by the significant disparity in electricity costs between day and night. With the increasing popularity of solar power, electricity is available at as low as Rs 2 per unit during the day. In contrast, the cost surges to Rs 10 per unit at night.
Demand patterns also play a crucial role. During the day, the state's power demand is only up to 3,500 MW, but it jumps to 5,500 MW at night. This forces KSEB to swap low-cost solar power with high-cost power during peak hours, leading to inefficiencies.
The commission's recommendations aim to align pricing with actual supply costs and encourage more efficient energy use across all consumer categories.
