Violation of tariff conditions: KSEB slaps fine for letting out flats as ‘private lodges’
The Kerala State Electricity Board (KSEB) has begun fining flat owners who rent out their properties as private lodges via booking apps. The utility argues that these rentals violate tariff conditions by using domestic electricity rates for commercial purposes.
Why it matters
This highlights the regulatory challenges faced by utility providers as the gig economy and short-term rental platforms blur the lines between residential and commercial property use.
The Kerala State Electricity Board (KSEB) is frowning on the practice of letting out flats for short stays – ‘private lodges’ in KSEB parlance – to customers via booking apps. The reason is that such rentals constitute a violation of the electricity tariff conditions as flats fall in the domestic category while private lodges are in the higher-tariff commercial category, officials of the power utility said on Monday.
The report objectively covers the KSEB's enforcement actions and the rationale behind the tariff classification.
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