Kochi : The Appellate Tribunal quashed contracts entered into by Kerala for buying of electricity at low rate. The ruling came on a batch of petitions filed by companies that included a Central public sector unit(PSU) that stated it was not possible to supply electricity to Kerala at low rates based on their long term contracts. The KSEB(Kerala State Electricity Board) said it will pursue further action once it gets legal advice on the matter.
The contracts of three companies with KSEB offered long-term electricity supply totalling 472 MW for 25 years at Rs 4.29 per unit. The agreements were signed in 2014 and the State started power purchases from 2016. However, in May of 2023, the State Electricity Regulatory Commission prohibited further purchase citing procedure lapses thereby plunging the State into acute power crisis at summer’s peak.
Later, on instructions of the government based on section 108 of the Electricity Act 2003, the Regulatory Commission restored the contracts it cancelled. In the aftermath, the companies, namely, NTPC – the Central PSU and private entities – Jindal Power Ltd and Jindal India Thermal Power Ltd approached the Tribunal claiming supply at contract rates was not possible.
When the contracts were revoked earlier, KSEB spend Rs 1200 crores to stall power crisis.
