THIRUVANANTHAPURAM: With the rainfall decreasing, the power generation in the dams of the state has been reduced. Since power has to be bought from outside the state for an exorbitant price, KSEB is gearing up to increase the electricity cess to overcome the severe crisis. A decision in this regard may be taken in the high-level meeting to be convened by Electricity Minister K. Krishnankutty tomorrow.

Although the deadline for increasing the electricity rates expired three months ago, the new rates could not be announced due to a stay by the High Court. Although KSEB is allowed to collect cess in the respective month to cover the loss of power purchase from outside, it has been reduced by the Regulatory Commission to 10 paise per unit. Even though crores are spent to buy electricity, cess is not collected much. Meanwhile, cess can be imposed without any limit as per the central law. Tomorrow's meeting will decide what can be done legally to cover the losses.

10 crore per day to purchase electricity

In addition to the reduction in hydropower production, the crisis was exacerbated by the fact that another interim contract could not be made to solve the power deficit caused due to cancellation of a long-term contract of 450 MW. More than Rs 10 crore is spent every day on purchasing power from outside. The daily electricity consumption is now 63 million units. Consumption will increase as Onam approaches. With that, more electricity will have to be purchased.

The non-availability of 450 MW is due to the cancellation of four long-term contracts. Last month, the Regulatory Commission gave permission to enter into alternative power contracts. A tender was called for it. The tender will be opened on September 4. After giving the work order, it will take at least three months for the electricity to arrive. Until then, electricity will have to be bought from outside for a huge amount.

Current production is 12 million units
At present, the production of hydropower is 12 million units. The state can hold on only if it can generate 15 to 20 MW.