KSEB pulled up for not providing details of financial commitment arising from short-term power purchases

Panel notes that this and other directives to submit a realistic month-wise load forecast, including energy demand and peak demand, have also been treated by KSEB with “deaf ears”

The State Electricity Regulatory Commission (KSERC) has observed that the Kerala State Electricity Board (KSEB) has repeatedly failed to furnish details of the financial commitment arising from short-term power procurements and how they affect the total finances of the State-run power utility.

While approving, with certain riders, a set of short-term procurement covering the period from September to December 2025 and March 2026, the Commission, in an August 7 interim order, also observed that a directive issued in June 2024 that the KSEB submit a realistic month-wise load forecast including energy demand and peak demand for a period of 10 years from 2024-25 to 2033-34 is yet to be complied with.

The Commission headed by T.K. Jose observed that the “Commission notes that these directives have also been treated by KSEB with “deaf ears.” The panel wanted the Chairman and Managing Director of the KSEB to take note of the non-compliance seriously.

In the absence of such details accompanying the latest KSEB petition for procurements covering a six-and-a-half-month period, the Commission had estimated the financial commitment using rates on the Discovery of Efficient Electricity Price (DEEP), the e-bidding portal of the Centre used for short term power procurement.

The Commission had concluded that the total financial commitment involved in the proposed power purchase for the September-December 2025 period and in March 2026 was about ₹684 crore.

The Commission has also asked the KSEB to reassess the projections on peak demand for the above-mentioned period, frowning upon a KSEB projection that it would increase at an average 5% over that of the previous year. According to the Commission, the KSEB has estimated this without considering all the factors. “Since the short-term peak power purchase is arranged based on the estimate of the anticipated peak shortage, wrong estimation of the peak demand and power purchase may result in additional financial liability to KSEB. The Commission cannot accept this estimation of peak demand,” it said.