Kerala is seeking additional electricity from NTPC and pursuing legal measures to restore a long-term power purchase agreement as the state faces outages, rising demand and limited access to cheaper contracted power, Electricity Minister Sunny Joseph said on Monday.
Joseph said the government was trying to procure electricity at the lowest possible rate and was in discussions with the Centre-run National Thermal Power Corporation, or NTPC, as one of the main options for meeting the shortfall. The Kerala State Electricity Board has also decided to approach the state government for permission to buy additional power at higher prices.
The immediate pressure on the system has come from a sharp increase in consumption, particularly as temperatures rise and households use more fans and air conditioners. Kerala has been experiencing power outages, especially at night, while the KSEB has faced difficulties in procuring additional electricity from other states.
Responding to questions about buying power at rates as high as Rs 30 per unit, Joseph said such purchases would create an additional financial burden for the state government. He said the possibility of passing that burden to consumers through a cess had not been considered at present.
“Right now we are trying to purchase power by any means as many people are saying they want electricity even if the price is high. As the temperatures rise, the use of fans and air conditioners increases,” Joseph said.
The minister also said the government was taking legal measures to reestablish a long-term power purchase agreement entered into with private power companies during the previous United Democratic Front government. The agreement was later scrapped by the previous Left Democratic Front administration, he said.
Joseph argued that the agreement could have provided around 440 megawatts to Kerala at Rs 4.2 per unit and that the state’s current electricity crisis could have been avoided if the supply had remained available. He said Kerala had needed to borrow electricity during March and April and was now required to return that borrowed power.
According to Joseph, the then LDF government had attempted to rectify the decision to scrap the agreement, but the effort came too late. His comments place the current procurement challenge alongside an earlier dispute over long-term contracting, with the state now considering more expensive short-term purchases while seeking a legal route to revive the earlier arrangement.
The KSEB’s request to procure additional electricity at higher prices and the state government’s discussions with NTPC are the immediate steps being considered to manage the shortage. The government’s next decisions will determine how much additional power can be secured and whether higher procurement costs will affect public finances or future consumer charges.
