Kerala government hiked electricity tariffs to 'benefit Adani': UDF

Thiruvananthapuram: Senior Congress leader Ramesh Chennithala on Saturday accused the Kerala government of hiking the electricity tariff "to benefit ports-to-energy conglomerate Adani" by bringing it into the power purchase system in the state.

Chennithala alleged that the long-term power purchase agreement signed during the UDF administration in 2016 to buy electricity at rates below Rs 5 per unit was cancelled during the LDF rule to facilitate the entry of Adani into this system.

The Kerala government had on Friday announced a 16 paise per unit increase in electricity tariffs for the 2024-25 financial year, effective from December 5. An additional hike of 12 paise per unit is set to follow in the 2025-26 financial year.

The Congress leader said this move of the government makes it clear that it was hand-in-glove with the power producing companies, especially Adani.

"Adani is the biggest beneficiary of this move. This decision of the government is aimed at bringing Adani into the power purchasing system in Kerala," he claimed.

He said that now the government was buying electricity at rates between Rs 10 to Rs 14 per unit.

Chennithala also alleged that some of the members of the electricity regulatory commission that cancelled the long-term contract were persons close to the CPI(M).

The latest tariff hike is the fifth such increase under the Pinarayi government's tenure since it came to power in 2016.

State Electricity Minister K Krishnankutty had on Friday said that the tariff increase was minimal and will not affect the household budgets of common people.

The tariff hike applies to all consumers using more than 40 units of electricity per month with a connected load exceeding 1,000 watts.

Fixed charges for both single-phase and three-phase connections have also been increased.

Following the decision to hike power tariffs, the Congress announced a massive protest against the same.

KPCC Chief K Sudhakaran had described the decision to hike electricity rates as "extremely unfair and condemnable."

The KPCC chief had also said that District Congress Committees will organise a flaming torch rally across the state on Saturday evening.