Kerala’s power crisis has intensified into a political dispute, with Electricity Minister Sunny Joseph blaming the previous LDF government for the loss of a long-term 465 MW supply agreement, while CPI(M) leader Pinarayi Vijayan rejected the charge and questioned the current government’s handling of the shortage.
Joseph said the 25-year agreement, signed during the earlier UDF government to procure electricity at Rs 4.29 per unit, was cancelled during the Pinarayi Vijayan-led LDF administration. He said the loss of that contracted supply had contributed to the present shortage as consumption increased and generation declined.
“Consumption has increased, while generation has decreased,” Joseph told the media in Thiruvananthapuram. He said Kerala was also repaying power borrowed earlier and warned that there was no immediate solution to the crisis. According to the minister, power consumption could nearly double during the summer, limiting the state’s ability to address the problem through immediate purchases.
The minister said the Kerala State Electricity Board was unable to procure enough electricity through the day-ahead and real-time markets because adequate power was not available there for short-term purchases. He argued that the cancelled agreement would have secured 465 MW for the state at a fixed rate of Rs 4.29 per unit.
Vijayan rejected the allegation in a Facebook post, accusing the UDF government of attempting to shift responsibility for what he described as administrative incompetence and mismanagement. He said the agreement had been signed in 2015 during the UDF government without prior approval from the Centre, the state government or the regulatory commission.
According to Vijayan, the agreement was entered into unilaterally by the KSEB and contained legal shortcomings. He said the then KSEB chairman and managing director had argued that continuing with the contract could cause losses to the board when issues involving deviations by the Centre and state governments were examined.
The agreement was eventually scrapped following a ruling by the Appellate Tribunal, Vijayan said. He added that the LDF government later approached the Supreme Court seeking restoration of the contract in the public interest, and that the legal dispute had not yet reached a final conclusion. The regulatory commission ultimately denied approval to the agreement in 2023, according to his account.
Vijayan also claimed that the previous government managed electricity availability without power cuts or load shedding, including during periods of poor rainfall. He cited purchases at higher rates and power-swapping arrangements with states that had surplus electricity as measures used to avoid restrictions.
The former chief minister alleged that the first signs of the current shortage appeared in mid-May and early June, but that the government did not respond in time. He also referred to Karnataka’s reported sale of power outside the state at Rs 9.08 per unit in July, questioning why Kerala could not seek a bilateral arrangement when it was willing to pay more than Rs 10 per unit.
Vijayan further alleged that the shortage was being used to weaken the KSEB and create hardship for consumers, with the eventual aim of presenting private companies as a solution. The government has said that long-term measures will be required to augment power availability, but Joseph stated that Kerala could not immediately enter into fresh long-term power purchase agreements.
