The State Electricity Board has been functionally disaggregated and made accountable in respect of each of their principal functions of generation, transmission and distribution with a view to create independent profit centres.

All the diagnostics studies have been conducted by formulating four task forces one each for the three profit centres and the Corporate head Office.

The Government of Kerala and the K. S.E. Board issued orders restructuring of K.S.E.B. into profit centres in April, 2000. The profit centres are headed by the Members, with well defined the roles and responsibilities.

Meters have been installed at the interfaces of the profit centres and profit centre wise energy accounting is in force w.e.f. 15-6-2000. Grid Code to ensure smooth operation of the system is in place.

Bimonthly spot billing has been rolled out to all sections. All consumer's premises are metered.

A scientific study on man power as well as skill requirement, arriving at work norms, job specification etc. in the reformed context is being conducted through the administrative Staff College of India, Hyderabad (ASCI). ASCI have submitted the Pilot Study report.

Primarily the restructuring of the distribution sector becomes all the more important and significant as this sector is dealing directly with the beneficiaries/ customers. The Distribution Profit Centre will have three Regional Profit Centres with Head Quarters at Thiruvananthapuram, Ernakulam and Kozhikode. Electrical Divisions under the Distribution Profit Centre are the smallest business unit, which is accountable for all the operations including energy transactions within the unit. Functional desegregation even at the lowest level is envisaged in the study report and this is to be implemented in consultation with the representatives of the Trade Unions.

As a Pilot Project on restructuring at the Division level, three typical Divisions on each under the categories Rural, Semi-urban and Urban are identified and strategies for implementation are being evolved.

Human Resources Development, Customer Service, Safety and Environmental aspects are given focus in the reform process.

Government of India have declared certain concessions to such State Electricity Boards, which are implementing the power sector reforms, proposed by the Government. As part of the implementation of the reform process envisaged in the Kerala Power Policy 1998 and to take advantage of the benefits offered by the Government of India, the Government of Kerala signed a MoU with the Government of India on 20-08-2001.