Representational Image. Photo:AFP/File
Thiruvananthapuram: The Kerala government has sought the prospects of launching new contracts instead of Kerala State Electricity Board’s (KSEB) cancelled long-term power purchase agreements.
According to the annulled contracts, the maximum charge per unit of power had been fixed at Rs 4.29 for 25 years. Currently the government attempts to find out if it could procure electricity at a same or a lower rate. The government had mulled to cancel these agreements and set new agreements in motion in the last year itself.
Kerala State Electricity Regulatory Commission (KSERC) cancelled four contracts made with three private companies in 2014, during the tenure of UDF government in 2014. KSEB had started to purchase electricity as per the contracts from 2016. The regulatory commission gave nod for these agreements on the basis of the government order that accorded temporary approval for them. However, the commission has found that the consumers will have to suffer an additional liability of Rs 5,926 crore due to the violations in 25 years.
KSEB has sought legal advice on whether to approach appellate tribunal or the Supreme Court over the cancellation of its contracts.