Kerala Power Minister Probes KSEB’s Rs 200 Crore Loss from Unplanned Electricity Contract
Kerala Power Minister K Krishnankutty has requested a detailed report from the Kerala State Electricity Board (KSEB) regarding a summer special electricity contract that is reportedly resulting in a loss of around Rs 200 crore. This demand came in response to an article published by ‘Mathrubhumi’. The minister made the request on Wednesday morning but had not received the report by evening.
The 50-day contract in question involves purchasing electricity from the external market at a rate of Rs 9.60 per unit, effective until June 30, to address the state’s power crisis. However, recent rains have alleviated the crisis, leading to the state surrendering cheaper electricity sourced from the central exchange due to the existing contract. With expected decreases in consumption in June, this situation is projected to result in a daily loss of Rs 4 crore for KSEB.
Reports indicate that KSEB entered into this contract without adequate planning or prior notification to the Regulatory Commission. KSEB maintains that they did not need the Commission’s permission, arguing that the purchase was necessary to address an emergency. Nonetheless, protocol generally requires approval from the Regulatory Commission for contracts that impose significant financial burdens.
