KSERC Clarifies Fixed Charges For Solar Prosumers Under Current Tariff Rules In Kerala

The Kerala State Electricity Regulatory Commission (KSERC) has responded to an appeal under the Right to Information (RTI) Act, 2005. The appeal was in reference to an earlier application dated March 2, 2025, where the applicant had asked whether any Act, Regulation, or Order mandates solar prosumers to pay a Fixed Charge on electricity generated through their own solar system, in addition to the Fixed Charge for electricity supplied by the Kerala State Electricity Board (KSEB).

Following the appeal, the Commission reviewed the response initially provided by the State Public Information Officer (SPIO), who had collected the required details from technical officers. The Appellate Authority found that the SPIO had not withheld any information and had responded based on the details available at that time. However, the authority also obtained additional clarifications from technical officers to give a more complete response.

It was clarified that electricity distribution licensees in the state, including KSEB, are authorized to charge consumers based on tariff orders issued by the Commission, in line with the Electricity Act, 2003, and relevant regulations. Consumer grievances related to tariff implementation should be directed to the Consumer Grievance Redressal Forums (CGRF) or the Electricity Ombudsman as per Sections 42(5) and 42(6) of the Act.

Although the query involved interpreting various legal provisions, which are beyond the RTI Act’s scope, the Commission chose to provide a detailed response. Section 45(3)(a) of the Electricity Act, 2003 specifies that charges for electricity supply include a fixed charge and an energy charge. The fixed charge recovers costs related to supplying power, while the energy charge recovers costs for the actual energy consumed. A consumer’s power requirement is calculated based on their connected load or contract demand, which reflects the equipment or machinery installed.

Consumers are required to pay the fixed charge based on this connected load, even if their monthly consumption is zero. For solar prosumers, although part or all of their energy needs are met by their solar systems, they still depend on the grid during non-solar hours. Therefore, prosumers must also pay fixed charges based on their connected load, regardless of whether their net grid consumption is zero or they feed excess power into the grid. The current tariff orders have not exempted prosumers from these charges.

In the case of domestic consumers, since many have not updated their connected load with the licensee, the Commission has decided to calculate fixed charges based on monthly consumption, which indirectly reflects power requirements. Hence, until a new order is issued, domestic solar prosumers will continue to pay fixed charges based on total consumption, as per the latest Tariff Order issued in the Kerala Gazette on December 9, 2024.