Kerala's Electricity Commission (KSEB) has begun a new one-time settlement scheme (OTS-2025) to carry out long-term depleted electricity bill arrears.
The plan will open on July 31 this year and covers more than two years of debt, but does not include thefts scheduled under Section 135 of the Electricity Act 2003. Consumers will be eligible to lower interest rates under the plan.
It offers the following interest rates – defaulting for more than 10 years (NIL), defaulting for five to 10 years (4%), debts of more than two years but less than five years (6%). Consumers can choose to remit the entire principal amount and total interest of a total payment. In this case, a 5% rebate will be awarded.
Rs 21,6406 crore owed
KSEB's previous OTS was implemented from July 2023 to December 2023. It was later extended to March 31, 2024. The plan generated Rs 446 crore of Rs 4, including principal amount of Rs 3058 crore and interest of Rs 1,088 crore. However, the conference documents show that by December 31, 2024, the electricity bill arrears of consumers of different categories had been owed Rs 216.406 crore.
In OTS-2025's guide, KSEB observes that shocking accumulation of debt has been a constant cause of concern. It said: “A large portion of such arrears are in litigation, before various courts. This in turn has caused huge income arrears in the board's accounts, including any legal means that they cannot actually recover.”
publishing – May 7, 2025-7:00 pm ist
