Power consumers in Kerala are bracing themselves for yet another increase in electricity charges. The Kerala State Electricity Board (KSEB) finds itself in dire financial straits due to the necessity of procuring additional power, amounting to Rs 10 crore daily, from sources outside the state. This predicament stems from deficient rainfall during the current season.
This stands in stark contrast to the preceding two years, during which the board generated profits by selling surplus electricity. Unfortunately, this financial burden is expected to be shouldered by the populace through raised tariffs.
In an attempt to address the situation, Power Minister K Krishnankutty will preside over a high-level meeting on Wednesday at 4 pm. Meanwhile, the High Court will revisit the case concerning the tariff hike on the same day. Presently under a stay order, this hike has been temporarily suspended. If the stay order is lifted, the Regulatory Commission could potentially issue a directive for rate hikes within the next two to three weeks.
The backdrop of this stay order coincides with the Commission’s anticipated decision on rates for the next four years, following its ongoing hearing. In light of these circumstances, it has been decided to maintain the current power tariff until September 30 or until the Regulatory Commission delivers its ruling, based on the resolution of the case.
The ongoing crisis stems from an absence of substantial rainfall even two and a half months into the monsoon season. The month of June witnessed daily electricity purchases amounting to Rs 7-8 crore, a number that decreased to Rs 5-6 crore in July due to increased rainfall.
As the production of cheaper hydroelectricity dwindles, the board is compelled to source more expensive power. This additional cost is then passed on to consumers as a surcharge, despite the existing surcharge of 19 paise per unit. To navigate these challenges, the Minister has called for a meeting to discuss appropriate steps.
Reservoir levels have plummeted to a mere 37% of their total capacity. Key dams like Idukki, Sabarigiri, Sholayar, Idamalayar, Kundala, and Mattupetty, all vital for future water needs, are operating at an average water level of only 36%.
Furthermore, the board’s liability has been exacerbated by the cancellation of a long-term 465-megawatt electricity procurement project due to procedural lapses. Instead, the board has been compelled to procure power at higher rates from external sources, further burdening its financial situation.
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