Kerala power crisis: Regulatory panel urges KSEB to ‘improve’ electricity demand forecasts

As Kerala continues to battle a monsoon-season power crisis, the Kerala State Electricity Board (KSEB) has been advised to improve its forecasts of the State’s power demand.

The Kerala State Electricity Regulatory Commission (KSERC), in a recent order allowing the KSEB to procure 200 MW for a one-year period, noted that there is a need to improve the demand forecast that reflects “the major influencing variables.”

Any decision on power purchase based on incorrect demand and supply position is likely to result in significant operational challenges and a financial liability that ultimately gets reflected in retail tariff of the consumers, it said.

The commission headed by T.K. Jose was of the opinion that the core committee of the KSEB, which finalises decisions regarding power purchases, has not evaluated the impact of the proposed power purchase on the utility’s finances and the impact on retail tariff.

The panel’s observations were linked to the 200-MW round-the-clock (RTC) power that KSEB had proposed to procure till July 14, 2027, to fill an anticipated deficit. The commission wanted the KSEB to explore the possibility of limiting the intake of power during daytime when solar power was available and schedule the larger share during the non-solar hours when the State faced a higher demand.

The commission had cleared the KSEB proposal to procure 100 MW each from the NTPC Vidyut Vyapar Nigam Ltd (NVVNL) and Power Pulse Trading Solutions Ltd at ₹5.96 per unit. But the panel headed by Mr. Jose observed that both entities were arranging the supply through coal-based power plants run by two other firms.

“It is also a fact that electricity is available in the market at cheaper rate of around ₹1.50 per unit to ₹2 per unit during solar hours. Hence, KSEBL has the option to avail of electricity at the cheaper rate during these periods,” the commission said in the July 18 order while allowing the purchase.