Emergency power procurement: KSEB cleared for high-cost electricity; one hour advance alert compulsory before outages

THIRUVANANTHAPURAM: Facing an imminent power crisis driven by a deficient monsoon, the Kerala State Electricity Board (KSEB) has been granted conditional permission by the State Electricity Regulatory Commission to procure high-priced electricity through short-term contracts until December.

The Commission issued the directive late at night, attaching stringent conditions aimed at safeguarding consumers. Crucially, the regulator has banned unannounced power cuts, stipulating that if load shedding becomes inevitable, the public must be notified at least one hour in advance via SMS or media announcements.

To protect consumers from sudden tariff hikes, the Commission instructed KSEB’s Board of Directors to dedicate its upcoming meeting to exploring strategies to absorb the inflated costs. The utility has also been directed to formally apprise the state government of the situation for necessary intervention, while actively searching for cheaper power alternatives in the open market. Additionally, to maintain public transparency, KSEB is required to publish a detailed breakdown of the crisis and the exact procurement costs on its official website.

September excluded from KSEB power pact over surging tariffs

The regulatory approval covers the upcoming months through December, with the notable exception of September. KSEB deferred its proposal for September after initial tender bids breached the ₹12 per unit mark. The utility now plans to float fresh tenders for that month before approaching the regulator again.

Approved Electricity Rates

Under the newly approved rates, KSEB will buy 150 MW at ₹9.99 per unit in July, and 310 MW at ₹9.93 per unit in August. For October, November, and December, the procurement will scale up to 500 MW at a rate of ₹8.89 per unit.

These emergency purchases mark a steep escalation from the Commission's previously approved base procurement rate of ₹4.64 per unit. This reliance on high-cost external power to bridge the monsoon deficit is projected to saddle the state utility with an additional financial liability of ₹282.50 crore.