The Kerala State Electricity Board (KSEB) says its spending on power purchases in 2026-27 could see an increase by ₹1,596.28 crore. As per a revised claim made by the power utility before the Kerala State Electricity Regulatory Commission, the estimate on power purchase spending in 2026-27 has been revised to ₹13,344.11 crore. Earlier, the Commission had given provisional approval for making power purchases for ₹11,747.83 crore in 2026-27 while clearing a multi-year tariff (MYT) petition.

The latest projection is part of a petition on mid-year performance review and revised forecast for the period from 2024-25 to 2026-27 which the KSEB has submitted to the Commission for approval. The Commission has scheduled a hearing on the KSEB’s petition on August 18 in Thiruvananthapuram.

The spotlight is back on KSEB’s power purchase expenses as Kerala was passing through a crisis in meeting the peak demand just before the southwest monsoon regained strength over the State. Kerala’s internal generation meets about 30% of the demand. The balance requirement is met through power purchases from multiple sources including central generating stations (CGS), independent power producers (IPP), power traders and power exchanges.

1,187.66 mu deficit

The KSEB has noted in the petition that it expects to face a deficit of 1,187.66 million units (mu) in 2026-27. While the total energy requirement of the State is estimated at 33,813.53 mu, the availability from all sources is likely to be 32,625 mu. Over the years, the power utility’s spending on power purchases has increased, especially with Kerala experiencing higher demand during the evening peak hours. The power purchase expenditure of the KSEB in 2023-24 stood at ₹12,982.59 crore

The projected spending for 2026-27 includes ₹1,109.07 crore on short-term purchases through the Union Power Ministry’s Discovery of Efficient Electricity Price (DEEP) e-bidding and e-reverse auction portal for meeting the peak deficit.

Published - August 08, 2026 04:20 pm IST