KSEB faces power shortages and regulatory scrutiny over high costs

The Kerala State Electricity Board (KSEB) is facing significant operational and financial pressures due to rising electricity demand and supply shortages. Between April and August, the utility spent nearly ₹1,190 crore on external power purchases, relying heavily on costly short-term contracts. The Kerala State Electricity Regulatory Commission (KSERC) has scrutinized these expenditures, questioning the utility's dependence on high-cost market purchases and noting delays in the rollout of a Battery Energy Storage System (BESS) intended to manage evening peak demand.

Simultaneously, KSEB has warned of potential power restrictions and load shedding across the state during evening peak hours, specifically between 6:00 pm and midnight. This shortage is driven by a 500 to 800 MW increase in peak-hour demand compared to previous years, fueled by rising temperatures and limited supply from central generating stations. The issue is compounded by a broader national electricity availability shortage of approximately 12,000 MW, according to the Grid Controller of India.