Kerala CM assures power crisis can be resolved by September 15 without burdening public

Thiruvananthapuram: Kerala is facing an unprecedented power shortage as rising demand, weak reservoir inflows and lower domestic generation force the state to buy electricity at higher rates, V D Satheesan said on Wednesday.

Speaking to reporters after the UDF Cabinet meeting, Satheesan said the government was taking several measures to manage the crisis without placing an excessive financial burden on consumers. He said efforts were under way to ensure uninterrupted power supply and that the Kerala State Electricity Board (KSEB) would be asked to communicate any power restrictions clearly.

According to Satheesan, Kerala's daily electricity consumption in July 2026 stood at around 4,800 to 4,900 megawatts, while energy consumption increased to between 86 million and 88 million units.

The lack of adequate rainfall has affected inflows into the state's reservoirs. Several dams, he said, have only around half of their storage capacity filled.

  Domestic power generation has also fallen significantly. At peak hours, electricity demand has increased by around 800 to 900 megawatts compared with September last year, adding further pressure to the state's power system.

Satheesan described the situation as a crisis not seen in recent times.

Satheesan blames cancellation of previous power agreement

Satheesan attributed part of the current situation to the cancellation of a long-term power purchase agreement signed during the Oommen Chandy government.

He said the agreement provided for 465 megawatts of electricity at ₹4.29 per unit for 25 years. According to him, the LDF government later cancelled the agreement without giving a reason.

He claimed that the state subsequently had to purchase electricity at rates ranging from ₹8 to ₹14 per unit. Electricity is currently being purchased at around ₹10 per unit, he said.

Satheesan argued that the present crisis could have been avoided had the earlier agreement remained in place.

The availability of power from outside Kerala has also become difficult because of coal shortages in northern states, he said.

Government aims to avoid excessive burden on consumers

Satheesan said the government was looking at every possible avenue to secure electricity without imposing an excessive charge on the public.

He said emergency measures were being taken to avoid power cuts and that KSEB would be instructed to provide accurate information about any restrictions.

The government expects to bring the present crisis under control by September 15 by arranging additional power, Satheesan said.

New system planned to monitor budget projects

The government is also introducing a new mechanism to improve the implementation of projects announced in the budget and ensure their credibility.

As part of the initiative, round-table conferences will be held in Thiruvananthapuram from August 16 to 18, with projects divided into different clusters.

The revised budget announced 73 projects covering more than 40 departments. Of these, 63 are inter-departmental projects requiring cooperation between multiple departments, while only 10 fall under individual departments.

The new system is intended to address delays caused by a lack of coordination between departments.

A detailed project report, or DPR, will be prepared for each project. At present, 34 projects have been selected for discussion under six clusters.

A knowledge partner has also been selected for the initiative.

The round-table discussions will examine the scope of each project, its strategic objectives, key components, implementation model and financial structure.

Think tanks, policy experts, academic and research institutions, technology organisations, multilateral development partners, financial institutions, investors, industry associations and start-ups will take part in the discussions.

The government said this is the first time such a system has been introduced in the state. The terms of reference for the projects have already been prepared.

Other Cabinet decisions

The Cabinet decided to constitute a panel of senior advocates to represent the state in cases before the Supreme Court.

It also raised the retirement age of district judicial officers in Kerala to 62, in accordance with directions from the Supreme Court.

Retired Kerala High Court judge Justice C Pradeep Kumar was appointed Ombudsman for local self-government institutions.

The Cabinet also approved ₹5 lakh from the Chief Minister's Distress Relief Fund for a Kozhikode woman who was subjected to an assault in the intensive care unit of Kozhikode Government Medical College in 2023.

No final decision on PM-SHRI scheme

Satheesan said the government had not taken an official decision on the PM-SHRI scheme.

A Cabinet sub-committee is examining the matter, he said. According to Satheesan, the sub-committee had not met for seven months during the previous government, whereas the present committee had already held a meeting.

He said the committee's report was not complete and that further details would be examined before a final decision is taken.

Satheesan also said there had been no discussion on the issue at the KPCC meeting.

Satheesan rejects reports about social media videos

Satheesan also criticised sections of the media over reports concerning his social media posts.

He said there had been no change in his position and that any change would be communicated to the media.

Rejecting reports that videos of his press conference had been deleted from his Facebook and Instagram accounts, he said the reports were false.

According to Satheesan, Instagram uses a different algorithm and some portions of the press conference were edited before being posted there. When the video was cross-posted to Facebook, the edited version was deleted to avoid duplication because the full version was already available on Facebook.

He said the video remained available on both platforms and that the Instagram post had received a good response.

AP leaders' meeting was scheduled earlier, says Satheesan 

Satheesan also rejected reports about a meeting with leaders of the AP faction.

He said the meeting had been scheduled three weeks earlier and was unrelated to any change in his position.

According to Satheesan, the leaders were in Thiruvananthapuram when the press conference was held. They had travelled from Kozhikode the previous day and were given time to meet him at his residence in the evening.

He accused sections of the media of creating false reports suggesting that the leaders had come to meet him because he had changed his position.