Thiruvananthapuram: The Kerala State Electricity Board (KSEB) has been denied permission by the regulatory commission to purchase electricity from Adani Enterprises at a rate of Rs 10 per unit to address the summer power shortage. The commission stated that improved rainfall and lower import coal prices mean that there is currently no justification for charging Rs 10 for per unit of electricity.

The commission emphasised the need to send a strong message against those attempting to raise prices without considering market realities. It reiterated that the board should not rely solely on purchasing electricity at inflated rates to resolve the power crisis and should seek cheaper alternatives instead.

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Meanwhile, the commission has approved contracts with Shree Cements Enterprises, which supplies electricity at Rs 9.80 per unit. Despite being a higher price, the commission felt compelled to approve this in light of the anticipated power shortage in April and May, as Shree Cement will provide 355 megawatts each over the two months.

Both Adani and Shree Cements had requested higher rates for electricity during peak consumption hours, from 4 pm to 2 am. Adani was set to supply 170 megawatts in April and May.  

Meanwhile in May, Adani will provide 100 megawatts of electricity at Rs 6.34 per unit, available for round-the-clock use.

In total, the commission has approved six contracts charging between Rs 6 and Rs 9.80 per unit. Other companies involved in these contracts include NTPC and Tata Power.

Due to the recent good rainfall across the country, electricity demand in other states has not risen compared to last year. The cost of imported coal has also decreased by 10-16 percent. The commission noted that these factors contribute to the reasoning behind the companies not required to demand the maximum price of Rs 10 in the electricity exchange.