THIRUVANANTHAPURAM : Come summer season, KSEB will be forced to purchase power during peak hours at a whopping Rs 20 per unit instead of Rs 4.29, the rate as per the earlier cancelled Power Purchase Agreement (PPA). While the board will not go for tariff hike, it will impose additional burden on consumers under its favourite moniker, ‘surcharge’.
Meanwhile, a top KSEB official told TNIE that even if they agree to purchase power at exorbitant rates, there is no guarantee of availability.
“We called for 300MW purchase and could only get 200MW. The demand is so high that we will have to go for a higher purchase rate of Rs 20 per unit during peak hours. However, there is no guarantee we would be able to procure power even at that price,” said the official.
Despite the government reinstating the 450MW Power Purchase Agreement, cancelled by the Kerala State Electricity Regulatory Commission (KSERC) citing technical and procedural lapses last May, only Jindal Power Ltd has agreed to provide power at the previous rate of Rs 4.29 per unit. However, it will start receiving power only after coal allotment takes place at the national level.
The remaining two firms, Jhabua Power Ltd and Jindal Thermal Power Ltd, which had entered into an agreement with KSEB, have not agreed to provide power, affecting the board’s prospects.
Contrary to KSEB’s earlier plan to procure 500MW in April and May, it received bids only for 200MW in April and 175MW in May. Last week, KSERC had considered the KSEB’s plea seeking approval for short-term power purchases from Adani Enterprises, PTC India Ltd (formerly Power Trading Corporation of India Ltd) and Tata Power Trading Company for 200MW in April and another 175MW in May at Rs 8.69 per unit. An official told TNIE that April and May are going to be crucial for KSEB and consumers alike.
“There is going to be a huge power shortage nationally due to summer. Above all, the country will be going to polls (Lok Sabha) then. At present, we have purchased power from private firms at Rs 8.69 to Rs 9 per unit. By April-May, this will go up by Rs 20 per unit which will hit consumers. Previous director board members of KSEB are the real villains as are KSERC officials who were on a mission to help Adani Power, which saw the PPA being cancelled,” a KSEB official alleged.
KSEB is expected to call upon consumers to restrict power use during peak hours in summer. Last April 15, demand was at a record 4, 903MW and consumption was 100.30 million units.
Peak demand to cross 5k MW
Peak demand likely to touch 5,371MW during peak hours (6pm-10pm) in April and 5,281MW in May. The deficit is projected at 1,205MW for April and 1,250MW in May. KSEB is working hard to cover this and ensure the state is not plunged into darkness. The KSEB official said all this could have been avoided is the 450MW PPA was not cancelled.
April, may crucial
April, May going to be crucial as huge power shortage is predicted nationally with LS polls around the corner
KSEB is expected to call upon consumers to restrict power usage during peak hours in summer