The Appellate Tribunal for Electricity (APTEL) has dismissed an appeal filed by solar prosumers challenging the Kerala State Electricity Regulatory Commission’s (KSERC) order on the levy of fixed charges.

The Tribunal declined to interfere with KSERC’s interim arrangement requiring domestic solar prosumers to pay fixed charges, either based on total electricity consumption or at ₹47(~$0.516)/kWh per month, based on their total connected load.

Background

The dispute arose from KSERC’s order, which required domestic solar prosumers to pay fixed charges either:

• Based on total consumption during the billing period
• At ₹47 (~$0.516)/kWh per month on the total connected load

KSERC had argued that total consumption could function as a proxy for connected load or recorded maximum demand.

However, Jameskutty Thomas and other prosumers submitted that they were willing to pay fixed charges based on connected load rather than consumption, noting that connected load details had already been disclosed at the time of the solar installation.

Commission’s Analysis

KSERC had noted that the total connected load of LT domestic consumers, including solar prosumers, as of March 31, 2025, was about 23,328 MW. As per the prevailing tariff order, the fixed charge estimated to be recovered from domestic consumers during the financial year (FY) 2025-26 is ₹13.16 billion (~$144.73 million), and the energy charge is ₹76.65 billion (~$842.97 million); thus, the total revenue from tariff for FY 2025-26 is ₹ 89.81 billion (~$987.71 million).

Thus, the average fixed charge recovery from domestic consumers and prosumers for FY 2025-26 is approximately ₹47 (~$0.516)/kWh per month.

The state regulator had clarified that levying fixed charges based on total consumption was only an interim measure until a final determination of fixed charges for domestic consumers/prosumers based on recorded maximum demand is completed.

APTEL observed that KERC’s order stated that prosumers had agreed to pay fixed charges based on connected load.

Since the appellants had not specifically challenged this recorded consent, APTEL held that it was wrong to question the Commission’s order.

Last year, KSERC had approved the Kerala State Electricity Board’s proposal to establish a 125 MW/500 MWh battery energy storage system at four substations.

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