The Kerala State Electricity Regulatory Commission (KSERC) has approved the Kerala State Electricity Board's (KSEB) proposal to buy short-term power until December to address an expected electricity shortage. However, it has raised concerns over the high cost of the purchases and directed the utility to take steps to reduce the financial impact on consumers.

In an order issued on Monday, the Commission said the approval was granted because of the significant peak-hour power shortage expected in the coming months and the need to begin power supply arrangements from July 1. The regulatory panel, headed by T.K. Jose, also noted discrepancies in the load generation balance (LGB) prepared by KSEB.

Commission raises concerns over cost and consumer impact

The approved purchases cover 308.43 million units of electricity at an average cost of ₹9.16 per unit, taking the estimated financial commitment to ₹282.50 crore. The Commission noted that the approved average power purchase cost for 2026-27 was only ₹4.64 per unit.

According to the order, purchasing such a large quantity of electricity at these rates could affect KSEB's finances and create liquidity problems unless the additional cost is recovered through electricity tariffs.

The Commission has directed KSEB to discuss the power purchase proposals at its next Board meeting and explore ways to minimise the impact on retail electricity tariffs.

KSEB had sought approval to procure power from June 15 to December 31, excluding September, citing a peak-hour power deficit running into hundreds of megawatts.

The Commission also directed KSEB to publish details of all short-term power purchases, including the source, quantity and rates, on its website the following day on a continuous basis.

It further observed that KSEB plans to commission several Battery Energy Storage System (BESS) projects during September and October 2026. The Commission noted that a substantial part of the projected peak demand shortage, particularly from October onwards, could be met through these storage projects.

Advance notice made mandatory for load shedding

Separately, the Commission directed KSEB to inform consumers at least one hour before imposing load shedding.

The direction follows complaints of unscheduled power cuts without prior warning. The Commission said load shedding may be imposed on a cyclic basis to the minimum extent necessary to maintain system stability in unavoidable situations. However, consumers must be informed at least one hour in advance through SMS, print and television media, social media platforms and other appropriate communication channels.