Thiruvananthapuram, 12 September (H.S.): The Kerala State Electricity Regulatory Authority has permitted the Kerala State Electricity Board (KSEB) to purchase electricity at higher rates through short-term contracts as the State grapples with a severe power shortage.

The approval applies to power purchase agreements beginning in October and remaining in force until May 2027. Under the order, the KSEB can enter into contracts involving tariffs of up to Rs 12.50 per unit. The Authority has also permitted the utility to purchase electricity at an average price of up to Rs 10.04 per unit during peak demand periods in April and May.

However, the decision is unlikely to result in the immediate withdrawal of the electricity restrictions in force, as supplies under the approved contracts will become available only from October.

The Authority has directed the KSEB not to make any additional power purchases for the remainder of September. It observed that the existing contract for this month provides only a limited quantity of electricity during night hours and would not offer any relief from the prevailing shortage.

The regulator said permission to buy electricity at unusually high prices was granted after considering the seriousness of the situation and the possibility of further restrictions if additional supplies were not secured.

It clarified that the approval was being issued in view of the electricity shortage across the country and should not be treated as a precedent for future purchases. The Authority indicated that such costly procurement would be allowed only under exceptional circumstances.

The order came a day after Chief Minister V.D. Satheesan directed the KSEB to purchase the electricity required to overcome the crisis, regardless of the prevailing market price. The government has asked the power utility to take urgent measures to bridge the widening gap between demand and availability and minimise inconvenience to consumers.

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Hindusthan Samachar / Arun Lakshman