Kerala power crisis: CM Satheesan blames contract cancellations under previous LDF rule
Kerala Chief Minister V.D. Satheesan on Wednesday attributed the ongoing power crisis in the state partly to the cancellation of long-term power supply contracts during the previous CPI(M)-led LDF government's term. He said the contracts, which were signed during the 2011-2016 Oommen Chandy-led Congress government, had ensured uninterrupted power supply at a fixed rate of ₹4.29 per unit for 25 years.
Satheesan stated that after the cancellation of these contracts in May 2023, the LDF government purchased electricity at much higher rates, ranging from ₹8 to ₹14 per unit, including from the Adani Group. He argued that the old low-priced contracts would have helped Kerala cope with the current 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,” Satheesan said.
When asked about the role of the Kerala State Electricity Regulatory Commission (KSERC), which cancelled the contracts for 465 MW citing procedural lapses, Satheesan noted 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 Chief Minister listed this cancellation as one of four major reasons for the peak-time power shortage. The other reasons include: an 800-1,000 MW increase in demand compared to last year, low water storage in reservoirs for hydro power due to poor monsoon rainfall, and increased nationwide electricity demand due to El Nino-related warm temperatures.
“Storage in the reservoirs is only 28% now compared to 61% last year during the same period,” Satheesan said. He added that daily consumption in Kerala has increased by 10 million units compared to 2024-25.
Satheesan also criticized the Opposition LDF's accusations against the UDF government regarding power curbs imposed after 6 p.m. “Will any new government, on coming to power, deliberately let the people remain in darkness for one hour?” he asked.
Electricity Minister Sunny Joseph had earlier stated that the state faces a 500-600 MW deficit and that unavoidable circumstances forced the government to introduce power curbs on a limited scale.
