Kerala Chief Minister Blames Previous Government For Power Crisis

28 Jul 2026 CW Team

Kerala chief minister V D Satheesan blamed the previous government for the state's power crisis after it scrapped a 25-year power purchase agreement that the Oommen Chandy administration had signed with private electricity producers. He said the pact supplied power at around Rs 4.29 per unit and covered 25 years, including one year of the Chandy administration and seven years under the Left Democratic Front. Satheesan said the decision exposed the state to market volatility.

He said that if the agreement had remained in force private companies would have been obliged to supply electricity and the state would not have had to seek power in the open market at higher rates. He noted electricity was scarce in open markets as demand was high amid an El Nino weather phenomenon. Water storage in hydel dams had fallen to 28 per cent from 61 per cent last year, rainfall had reduced by 50 to 56 per cent and consumption had risen by 800 to 1000 megawatt (MW), producing a shortfall.

Satheesan said that after cancellation the Left administration bought power from private firms, including Adani, at rates of Rs 8 to Rs 14 per unit. He added that the Kerala State Electricity Regulatory Commission had recommended the scrap and that the pact was abandoned after eight years citing procedural errors.

Satheesan said the crisis had emerged within a month of the new government taking office and that the administration was taking measures to address shortages. The government had bought 200 MW from the open market for around Rs 5 per unit and was seeking to procure a further 200 MW at lower rates. He said the Kerala State Electricity Board would be asked to review advance notification of power cuts and any lapses would be examined as part of efforts to reduce outages.

Infrastructure Urban

28 Jul 2026

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