Kerala Solar Prosumers Challenge KSEBL Over Unlawful Fixed Charges And Security Deposits

A group of six solar prosumers in Kerala has approached the Kerala State Electricity Regulatory Commission (KSERC) with a petition against the Kerala State Electricity Board Ltd. (KSEBL), alleging unlawful practices in charging fixed costs and retaining excess security deposits. The petition is led by Jameskutty Thomas and supported by five other solar consumers who have installed rooftop solar plants for their domestic electricity needs. They have accused KSEBL of violating the provisions of the Electricity Act of 2003 and have sought legal orders to ensure compliance with the law.

The central issue raised by the petitioners is the way KSEBL has been calculating fixed charges for domestic consumers who have invested in rooftop solar power plants. According to the petition, before late 2022, the fixed charges were determined only on the electricity imported from the grid. However, the petitioners claim that since November-December 2022, KSEBL has altered its method and started calculating fixed charges on the basis of “total monthly consumption.” This revised calculation now includes both the electricity imported from the grid and the electricity generated and consumed from the consumers’ own solar plants.

The petitioners argue that this practice is unjust and unlawful. They emphasize that fixed charges are essentially a return on the investments made by a distribution company in building and maintaining the infrastructure required for electricity supply. In this case, they stress that the solar rooftop plants were fully financed, built, and are maintained by the consumers themselves, without any financial involvement from KSEBL. Therefore, KSEBL has no right to levy charges on electricity generated by the consumers’ own investments. They describe this action as contrary to the fundamental principles of tariff determination laid out in the Electricity Act of 2003 and the regulatory framework of the KSERC.

In the petition, the consumers further highlight that KSEBL has not made any investment in their solar plants and has not incurred operational costs for these systems. Despite this, KSEBL continues to impose fixed charges as though it is providing the electricity generated from the solar panels. The petitioners view this as an overreach by the distribution company. They had initially raised their concerns through the grievance redressal system and also approached the High Court of Kerala. However, they were directed to take the matter to KSERC, as it is the appropriate authority to adjudicate such regulatory disputes.

The petition also addresses a second grievance regarding the treatment of security deposits. The consumers argue that KSEBL has unlawfully retained higher security deposits from solar prosumers. They point out that the security deposit is linked to the supply of electricity provided by the licensee. Since solar prosumers generate part of their own electricity and import less from the grid, their security deposit should logically be reduced. Instead, KSEBL has retained a higher amount, which the petitioners consider a violation of consumer rights.

To support their case, the petitioners submitted the required documents, including a demand draft of Rs. 10,000 addressed to the Secretary of the KSERC. They are hopeful that the regulatory commission will examine their complaint and issue appropriate directions. The group expects a resolution that not only corrects the current practice but also provides refunds of the illegally collected fixed charges and excess security deposits. They believe that such an order will ensure justice for solar prosumers and encourage more consumers to adopt rooftop solar without fear of unfair practices by distribution companies.