Thiruvananthapuram: The Kerala State Electricity Board (KSEB) is grappling with a financial crisis caused by the rising temperatures across the state. Increased heat has led to a surge in electricity consumption, placing significant strain on KSEB. Despite efforts to restore long-term contracts aimed at securing electricity at affordable rates, the lack of cooperation from companies has complicated matters for KSEB. This forced them to purchase electricity at higher prices and subsequently pass on the burden to consumers through increased surcharges.
Recent data reveals a total consumption of 5031 MW of electricity within the state, far exceeding the central allocation of 1600 MW for Kerala. While Kerala is slated to receive 1200 MW through power contracts and an additional 1600 MW from hydropower projects, the deficit is filled by purchasing electricity at high rates.
Presently, KSEB procures electricity from the Indian Energy Exchange (IEX) at approximately Rs 12 per unit. With heat levels anticipated to rise further, electricity consumption is expected to soar. To address the financial liabilities arising from increased procurement costs, KSEB considered raising electricity charges as a potential solution.
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