A recent order by the Kerala State Electricity Regulatory Commission (KSERC) cancelling a long-term power purchase agreement of the Kerala State Electricity Board Ltd (KSEB) is likely to hurt the utility’s plans to meet Kerala’s power requirement.
The commission brought out an an order to cancel the power supply agreements between KSEB and four power generators on May 10. The order has upset the power management plans of KSEB, which is struggling to find out alternative sources.
In 2016, KSEB entered into an agreement with four private companies to purchase power at ₹4.29 per unit. The agreement stipulated purchasing 465 MW of power from these companies over a period of 25 years. As per this, the board will receive 115 MW from Jhabua Power Ltd, 150 MW from Jindal Power Ltd, 100 MW from Jhabua Power Ltd and 100 MW from Jindal India Thermal Power Ltd.
