Looming Power Crisis in Kerala as Consumption Soars Amid Financial Strain

Kerala faces an impending power crisis in the upcoming summer season, compounded by a surge in electricity consumption and the financial strain experienced by the Kerala State Electricity Board (KSEB). The board has reportedly notified the state government of impending restrictions on electricity usage in April and May unless pending payments from government institutions, including the water authority, are received promptly. Despite efforts to reinstate canceled contracts, a shortage of low-cost electricity persists, leading the board to accumulate an additional liability of Rs 250 crores. With monthly electricity consumption increasing by at least 10 percent compared to the previous year and diminishing water levels in dams, the situation is further exacerbated.

To meet immediate electricity requirements, the KSEB has entered into several short-term contracts for the months of March, April, and May, with some arrangements involving the return of borrowed electricity. The financial burden on the board includes Rs 650 crores for payments to the power exchange during this period, coupled with an additional daily expenditure of Rs 6 crores to address escalating daily requirements. The uncertainty of procuring electricity at affordable rates, given the anticipated nationwide surge in consumption during the upcoming summer, adds complexity to the already challenging scenario.