Kerala’s power crisis partly due to cancellation of long-term contracts during LDF govt’s term, says V.D. Satheesan

Kerala Chief Minister V.D. Satheesan on Wednesday blamed the ongoing power crisis in the State partly on the cancellation of a clutch of long-term power supply contracts during the previous CPI(M)-led LDF government term.

These contracts, which took effect during the 2011-2016 Oommen Chandy-led Congress government’s period, had ensured uninterrupted power supply at र4.29 per unit for 25 years. After the cancellation of the contracts (in May 2023 when the LDF was in power), the LDF government had purchased power at per unit-prices of र8 to र14, including from the Adani Group, said Mr. Satheesan, adding that the old low-priced contracts would have stood Kerala in good stead during the present crisis.

“The then Chief Minister (Pinarayi Vijayan) who is now the Opposition Leader has not explained why the contracts were cancelled. The then Power Minister (K. Krishnankutty) also has not explained why,” Mr. Satheesan said.

On being pointed out that it was the Kerala State Electricity Regulatory Commission that cancelled the contracts for a total of 465 MW citing procedural lapses, Mr. Satheesan said that CPI(M) leaders were on the commission at the time. He also pointed out that the contracts were cancelled eight years after they were signed.

The cancellation was “one of four major reasons” for the ongoing peak-time power shortage experienced by Kerala, he said. The other reasons being, an 800-1,000 MW increase in demand compared to last year, low water storage in the reservoirs for hydro power generation on account of the poor monsoon rainfall, and the increased nationwide demand for electricity in the market due to El Nino-linked warm temperatures, he said.

“Storage in the reservoirs is only 28% now compared to 61% last year during the same period,” Mr. Satheesan said. Compared to 2024-25, Kerala has recorded an increase of 10 million units (mu) in daily consumption, he added.

On power restrictions

He also slammed the Opposition LDF’s accusations against the UDF government with respect to the power curbs imposed in the State. “Will any new government, on coming to power, deliberately let the people remain in darkness for one hour?” he asked.

The Chief Minister’s comments on the issue have come at a time when power curbs have been imposed in Kerala after 6 p.m.

Electricity Minister Sunny Joseph had stated last week that the State was currently facing a 500 MW to 600 MW deficit in availability. Unavoidable circumstances had forced the State government to introduce power curbs on a “limited scale” and attempts were being made to overcome the crisis, Mr. Joseph had said.