State Electricity Regulatory Commission approves KSEB’s power purchase proposals, but calls financial burden “excessive” - The HinduPublished - June 29, 2026 09:38 pm ISTThe Kerala State Electricity Regulatory Commission on Monday gave its approval for a set of power purchases proposed by the Kerala State Electricity Board (KSEB) to meet an anticipated power deficit till December, but noted that the financial burden arising from it was “excessive.”In an order on Monday, the Commission said it was approving the short-term purchases in view of the “significant anticipated shortage” during peak hours, and considering the urgency for commencing the supply from July 1. The panel headed by T.K. Jose noted that there are discrepancies in the load generation balance (LGB) prepared by KSEB.The Commission pegged the likely financial commitment on account of the purchases, calculated at an average per-unit cost of ₹9.16, at ₹282.50 crore for a total quantum of 308.43 million units (mu). Whereas, the approved average rate for power purchase for 2026-27 was only ₹4.64 per unit.“The huge quantum of power purchase at the excessive rates will affect the financials of KSEB and ultimately end up in liquidity problems unless such cost is passed on to the consumers through tariff,” the order said. Given the possibility of such a situation, the Commission has asked the KSEB to explore strategies to minimise the impact on retail tariffs by discussing the power purchase proposals at its next director board meeting.In its petition, the KSEB had sought the Commission’s nod for power purchases from June 15 to December 31 this year, excluding September, citing peak-hour deficit running into hundreds of megawatts.The Commission has directed the KSEB to publish details of short-term power purchases on the KSEB website including source, quantum and rates the next day on a continuous basis.Further, the Commission observed that the KSEB planned to commission a number of battery energy storage systems (BESS) in September and October 2026 this year. A substantial part of the peak demand shortage projected by KSEB, especially from October, be met through these BESS projects, it noted.Alert the consumersThe State Electricity Regulatory Commission has directed the KSEB to alert consumers “at least one hour” before imposing loadsheddings.The direction has come in view of complaints that the KSEB was imposing unscheduled loadsheddings without any warning to consumers. The Commission said that the power utility can impose loadsheddings on “cyclic basis to the minimum extent” in unavoidable circumstances to ensure system stability. However, this should be done only after informing the consumers through ‘SMS, print and visual media, social media platforms and other appropriate means at least one hour in advance.Published - June 29, 2026 09:38 pm ISTSign in to unlock member-only benefits!Access 10 free stories every monthSave stories to read laterAccess to comment on every storySign-up/manage your newsletter subscriptions with a single clickGet notified by email for early access to discounts & offers on our products${ ind + 1 } ${ device }Last active - ${ la }