Kerala’s power crisis partly due to cancellation of long-term contracts during LDF govt’s term, says V.D. Satheesan

Kerala Chief Minister V.D. Satheesan has attributed part of the state's current power crisis to the cancellation of several long-term power supply contracts during the tenure of the previous Left Democratic Front (LDF) government. According to reports, these contracts, which were signed under the Congress-led government from 2011 to 2016, guaranteed uninterrupted power supply at ₹4.29 per unit for a period of 25 years. However, these agreements were terminated in May 2023 while the LDF was in power, leading to higher procurement costs for the state, with power purchased at prices ranging from ₹8 to ₹14 per unit, including purchases from the Adani Group. Satheesan claimed that had these contracts remained in place, they would have significantly alleviated the current energy shortages. He further noted that the former Chief Minister, Pinarayi Vijayan, who is now the leader of the opposition, has yet to explain the rationale behind the contract cancellations. Similarly, the former Power Minister, K. Krishnankutty, has not offered any clarification regarding the decision. When questioned about the role of the Kerala State Electricity Regulatory Commission in cancelling the contracts, Satheesan highlighted that CPI(M) members held key positions within the commission at the time. He also emphasized that the contracts were revoked eight years after their initial signing, raising concerns over the timing and justification for such action. In addition to the cancellation of long-term contracts, Satheesan identified three other contributing factors to the current power crisis. These include an increase in electricity demand of approximately 800 to 1,000 megawatts compared to the previous year, reduced water levels in reservoirs due to below-average monsoon rainfall, and heightened national electricity demand driven by El Niño-related temperature conditions. Current reservoir storage stands at just 28%, down from 61% during the same period last year. Furthermore, daily electricity consumption in the state has risen by 10 million units since the start of the financial year. Regarding recent power restrictions, Satheesan criticized the opposition LDF for its allegations against the ruling United Democratic Front (UDF) government. He questioned whether any newly elected administration would intentionally impose power cuts, asking, “Will any new government, on coming to power, deliberately let the people remain in darkness for one hour?” Power restrictions have indeed been enforced in Kerala after 6 p.m., following statements from Electricity Minister Sunny Joseph, who noted that the state is currently experiencing a deficit of between 500 and 600 megawatts. Joseph acknowledged that unavoidable circumstances necessitated the introduction of limited-scale power cuts and that efforts are underway to resolve the situation. The ongoing debate surrounding the power crisis underscores broader tensions between political parties and highlights the complex interplay of policy decisions, environmental factors, and economic pressures affecting energy security in the region. As officials work to address the immediate challenges, the implications of past administrative choices continue to shape the current landscape of Kerala's energy management.