1 hr ago
Kerala Power Cuts Renew Debate Over Cancelled Electricity Deals
Kerala is facing repeated power cuts, especially at night.
Officials indicate that the problem could continue for several weeks.
The BJP says Kerala lost access to cheaper electricity after two long-term contracts were cancelled.
Those contracts were meant to provide 465 megawatts of power for 25 years.
The agreed price was between Rs 4.26 and Rs 4.29 per unit.
The regulatory commission cancelled the contracts in May 2023 because of procedural and technical concerns.
The BJP says Kerala then had to buy more electricity from outside sources, sometimes at Rs 7 to Rs 10 per unit.
It claims this has cost the electricity board more than Rs 2,130 crore.
The party is seeking a full investigation and legal action if wrongdoing is found.
Recurring night-time power cuts are affecting households across Kerala and may continue for weeks.
The BJP says cancelling long-term power agreements created an additional burden of more than Rs 2,130 crore.
The cancelled agreements would have supplied Kerala with 465 MW for 25 years at Rs 4.26–Rs 4.29 per unit.
The Kerala State Electricity Regulatory Commission cancelled the agreements in May 2023, citing procedural and technical issues.
The BJP has demanded an investigation into the cancellation, officials involved and decisions by the previous government.
- Who
- Kerala households, the Kerala State Electricity Board, the Bharatiya Janata Party and the Kerala State Electricity Regulatory Commission are central to the dispute.
- What
- Recurring power cuts have intensified a political dispute over the cancellation of long-term power purchase agreements.
- Where
- Across Kerala, with the political allegations focused on decisions by the state government and regulatory commission.
- When
- The agreements were entered into in 2014 and cancelled in May 2023; the current power cuts are expected to continue for weeks.
- Why
- The BJP says cancelling relatively low-cost contracts forced Kerala to purchase costlier electricity from power exchanges and other outside sources.
BJP allegations
Regulatory explanation
Reason for the cancellation
BJP allegations
The BJP alleges that the cancellation resulted from a nexus involving the previous Pinarayi Vijayan government, former Power Minister K. Krishnankutty and the regulatory commission.
Regulatory explanation
The Kerala State Electricity Regulatory Commission cancelled the agreements in May 2023, citing procedural and technical issues.
Financial impact
BJP allegations
The BJP says the cancellation eliminated access to cheaper contracted electricity and caused the Kerala State Electricity Board an additional burden of more than Rs 2,130 crore.
Regulatory explanation
The article provides no response from the government or regulatory commission disputing or confirming the BJP's financial estimate.
Possible remedies
BJP allegations
The BJP says options under the DBFOO framework could have protected the agreements and is seeking a comprehensive probe and possible legal action.
Regulatory explanation
The article does not report whether the government or commission considered those options or plans a response.
Key facts
- Power supply under agreements
- 465 MW for 25 years
- Agreed price
- Rs 4.26 to Rs 4.29 per unit
- Contracts
- Agreements with Jhabua Power and Jindal Power
- Cancellation date
- May 2023
- Stated cancellation grounds
- Procedural and technical issues, according to the Kerala State Electricity Regulatory Commission
- Alleged additional burden
- More than Rs 2,130 crore, according to the BJP
- Alternative purchase prices
- The BJP says power was sometimes bought at Rs 7 to Rs 10 per unit
Sources
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