State Electricity Board is moving towards purchasing power from outside without waiting for the monsoon which is not sure to happen yet. Efforts are being made to make an agreement to purchase 500 MW of electricity per day. The reason for the current crisis is that the long-term contract to purchase electricity for 25 years at the rate of 4 rupees 11 paise had to be terminated intermittently. The existing contract had to be cancelled because of the lapse in procedures. This decision, which was detrimental in effect, was that of the Regulatory Commission, which was set up to save the electricity board and the consumers as well. The depth of the damage done by the Regulatory Commission became clear only when the power supply at the rate of Rs 4.11 per unit had to be stopped and the monsoon rains cheated. The government and the electricity board are investigating whether the cancelled contract can be revived. Efforts are also being made to make new contracts with electricity companies, but taking advantage of the opportunity, the companies are offering electricity only at higher prices. Many companies are not willing to provide electricity. Only two companies are ready to provide electricity but that is at a high cost. Two companies have agreed to provide electricity for five years at a rate of Rs 6.88 per unit. If electricity is purchased at this price, the consumers are the ones who will have to bear the additional burden. Due to the 'cleverness' of the Regulatory Commission, there is a plight of having to pay Rs 2.77 more per unit to purchase electricity. The current discussion is whether there is a way to restore the cancelled contract, but the question arises whether the companies will give in to it.

The government refrained from strict restrictions considering Onam and Puthuppally by-elections. The rains in the last few days also gave a slight hope. However, the board is in a situation where it cannot survive on its own without buying power from outside. Electricity consumption is also increasing. To meet the demand, electricity has to be purchased at high prices. The regulatory commission suggested canceling the old contract citing the price difference, but new contracts should be made at a price two rupees more than the previous price. It is the consumers themselves who have to compensate for the loss caused by this. Any action taken by the Board will in effect harm the consumers.

It is announced that the surcharge of 19 paise per unit which customers are currently paying will continue. When entering into new contracts to purchase electricity at a higher price, the rates will have to be raised proportionately. Any increase in operating cost will also be reflected in the rate. In short, electricity prices are likely to rise again. Decisions without policy or planning have put the board on the enemy side of the people. Consumers should be prepared for another backstab from the board.