Power purchases push KSEB into financial crisis; additional expenditure touches ₹1,000 crore in 2 months
The Kerala State Electricity Board faces severe financial strain, accumulating unpaid bills, delayed pensions, and mounting debts after purchasing unapproved costly power from Himachal Pradesh and private firms to manage shortages.
The Kerala State Electricity Board faces severe financial strain, accumulating unpaid bills, delayed pensions, and mounting debts after purchasing unapproved costly power from Himachal Pradesh and private firms to manage shortages.
The Kerala State Electricity Board faces severe financial strain, accumulating unpaid bills, delayed pensions, and mounting debts after purchasing unapproved costly power from Himachal Pradesh and private firms to manage shortages.
Thiruvananthapuram: The Kerala State Electricity Board (KSEB) is facing financial strain following large-scale power purchases to tide over the electricity crisis. With payments for the additional power being made every week, the board is struggling to meet its day-to-day expenses.
Contractors are yet to receive payments for work, including emergency repairs, carried out since Onam. Pension benefits due to retired employees have also accumulated. Large-scale power purchases in October, including from Himachal Pradesh, have further worsened the financial situation. The KSEB needs at least ₹1,000 crore to overcome the crisis.
Although the KSEB held discussions with Himachal Pradesh in September amid the power shortage, the electricity was supplied only in October. The board purchased power at ₹14.50 per unit, paying ₹80 crore in the first week and ₹67 crore each in the subsequent weeks. The total expenditure under this agreement is estimated at around ₹300 crore.
The KSEB also purchased up to 200 MW of electricity from private company VEH Global at ₹11 per unit. The expenditure under this agreement is estimated at around ₹40 crore. Neither of the two agreements had received approval from the regulatory commission. The KSEB submitted an application seeking the commission's approval only recently.
Including the payments for agreements approved by the commission to ensure power supply during peak hours, the KSEB incurred additional expenditure of nearly ₹1,000 crore in just two months. Even if the commission approves these expenses, the board will have to wait further to recover the amount through electricity bills.
If the KSEB is forced to continue purchasing electricity at high rates from Himachal Pradesh or GNA Energy Private Limited, the financial burden on both the board and consumers could increase.