KSEB’s Rs 20 Crore Daily Struggle: Tackling Kerala’s Power Crisis Amidst Soaring Costs

The Kerala State Electricity Board Limited is currently addressing a power shortage issue due to factors like insufficient rainfall and the cancellation of long-term contracts. They are spending more than Rs 20 crore daily to purchase up to two crore units of electricity at high prices, with the maximum rate being Rs 10 per unit from the power exchange. To cover the shortfall for the next three months, companies are requesting higher prices for short-term contracts. In a recent tender, the average price quoted was Rs 7.8, with the lowest price for September being Rs 7.6, and this didn’t decrease in reverse bidding. For October, the quoted price of Rs 9.36 was reduced to Rs 7.87, and for November, it dropped from Rs 8.49 to Rs 7.90. The final approval of these agreements depends on the regulatory commission’s decision.

The cost of buying expensive electricity will ultimately be passed on to the public through future rate hikes and surcharges. Another tender is scheduled to open on Thursday, and it comes with the condition that the electricity purchased must be returned during the next rainy season.

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