THIRUVANANTHAPURAM: Secret move in KSEB to restore high-priced long-term power contracts cancelled by Regulatory Commission. It is alleged that the repeated raising of the issues that the crisis is dire and that current cuts will be needed soon is with this aim in mind. Chief Minister has called a meeting today to take a decision on the electricity issue.

The board is arming itself with the reduction in hydropower generation due to reduced rainfall. However, even if hydropower is fully available, it will meet only one-third of the total consumption. This shortfall can be made up through short-term power contracts. Yet, the issue of crisis is being raised as an issue with the cancelled contracts in mind.

On May 10, the Regulatory Commission cancelled the 465 MW long-term power purchase agreement, terming it as illegal. The contract was for Rs 3.49-5.15 per unit from Jindal and Jhabua companies. The commission cancelled the contract when it continued despite the lack of approval.

The board had plenty of time to overcome this crisis. Other companies are willing to provide electricity at a lower price but no agreement was attempted with them. Instead, it is alleged that KSEB Chairman Rajan Khobragade made a move to restore the cancelled contract by any means. The Appellate Tribunal was approached against the Commission's order but a stay was not given. With this, the chairman requested the government to intervene according to section 108 of the Electricity Act (authorizing the government to restore the contract in times of crisis) but this was rejected by the law department. After this, they approached the Regulatory Commission to allow the long-term contract to continue at least temporarily. The answer was harsh criticism.

Current situation

• As the contracted power went out and rains receded, the crisis worsened. To overcome this, electricity was purchased from the power exchange at a high cost.
• Power must be paid in advance when purchased on exchange. Payment should also be made every day. This led to a financial crisis.
• With this, the power minister directly intervened. The minister called a meeting on August 16. It was decided to call for a short-term contract following strict instructions from the minister.
• The chairman raised issues for that as well. He informed that the tender will have to be given till September 9 and we will have to wait till November to start getting electricity.
• The minister suggested making a swap power agreement until then. A swap contract is a transaction in which electricity is bought from outside and then returned when there is a surplus.
• The crisis has been stopped for the time being in this way. In this situation, the decision of the meeting called by the Chief Minister today is crucial.