Kerala: KSEB's cancelled contract to be restored by government amid power crisis

Thiruvananthapuram: The government has decided to direct the Regulatory Commission to restore the cancelled long-term electricity contract for 465 MW. The government is restoring the contract cancelled by the Regulatory Commission, citing procedural lapses using special powers under the Electricity Act. The decision was taken in view of the acute power crisis.

Earlier, the Electricity Regulatory Commission cancelled the long-term contract with KSEB. The contract for 465 MW was cancelled due to technical issues and lapses in procedures. However due to sudden loss of 465 megawatts and reduced rainfall, the board was in dire straits. Even the Chief Minister criticised the action of the commission. Finally, the government intervened by accepting the KSEB demand. The action is under Section 108 of the Electricity Act, which empowers the government to intervene in policy matters.

Following the government's directive, the commission will now proceed to restore the contract. By restoring the contract, the board will get electricity from the three companies for another 18 years at a lower rate of Rs 3.5 to Rs 4.29 per unit. In all the short-term tenders that were opened recently, the companies put forward huge amounts. KSEB is overcoming the shortage by buying power from outside at the current higher tariff.