The State Government decision to spare domestic consumers from the last electricity tariff hike for consumption up to 120 units has come as a severe blow to the Kerala State Electricity Board (KSEB).
The government was to have paid the KSEB a monthly subsidy of Rs 25 crore in 2013-14 to cover the loss faced by the power utility owing to the exemption, but not a single paisa has been paid yet. "The government owes us Rs 300 crore at Rs 25 crore a month for the 2013-14 financial year. We have not received any payment so far. In fact, the payments for the 2012-13 financial year were completed only recently," a senior KSEB official said.