Power crisis: KSEB tackling power shortage at a cost of Rs 20 crore per day

Thiruvananthapuram: Kerala State Electricity Board Limited currently tackles power shortage caused by lack of rains and cancellation of long-term contracts by spending over Rs 20 crore on a daily basis. Up to two crore units of electricity a day are bought at high prices. Electricity purchased from the power exchange is often charged at a maximum price of Rs 10 per unit.

To cover the shortfall for the next three months, companies are asking for higher prices for the short-term contracts. The average price in the tender that opened on Tuesday was Rs 7.8.

The lowest price quoted for September is Rs 7.6. This was not reduced in reverse bidding. The quoted price of Rs 9.36 was reduced to Rs 7.87 for October. The price has come down from Rs 8.49 to Rs 7.90 for the month of November. Final approval of these agreements is subject to the decision of the regulatory commission.

The burden of purchasing expensive electricity will be borne by the public with rate hikes and surcharges imposed in the future. Another tender will open on Thursday. This tender is being called with the condition that electricity will be returned during the next rainy season.