No power cuts in October? Kerala buys Himachal electricity at ₹14.5 per unit

Thiruvananthapuram: Power cuts in Kerala have been avoided with the commencement of electricity purchases from Himachal Pradesh at a high price. The state is unlikely to face power cuts in October, provided there are no disruptions in transmission lines and electricity consumption does not rise abnormally.

An agreement has been reached with the Himachal Power Corporation to purchase up to 800 MW of electricity during the day and night throughout October at ₹14.5 per unit. The Kerala State Electricity Board (KSEB) has said that electricity could be purchased for a longer period if the price is reduced to ₹12.5 per unit. Discussions on this are under way.

KSEB had explored the possibility of procuring electricity from Himachal Pradesh as early as September. However, the plan was dropped at the time as the price was considered too high. The decision was later reversed amid growing public anger over power cuts.

Initially, Himachal Pradesh had agreed to supply almost equal quantities of electricity during the day and night. The government had estimated that this arrangement would push the average cost to around ₹30 per unit. Under the revised arrangement, however, around 95 per cent of the electricity supplied from Himachal Pradesh will be received at night.

KSEB will purchase around 28 crore units of electricity from the Himachal Power Corporation this month. Up to 800 MW will be supplied at night, when electricity demand in Kerala is at its peak.

At ₹14.5 per unit, the additional expenditure for KSEB this month is estimated at ₹410 crore. The agreement was finalised following discussions held by KSEB directors who visited Himachal Pradesh.

No prior permission from Regulatory Commission

The Regulatory Commission had earlier permitted KSEB to purchase electricity at a maximum price of ₹10 per unit. Permission from the Commission is required for purchases at a higher price.

KSEB's position is that, given the emergency situation, it can approach the Commission for approval within 10 days of commencing the purchase of electricity.