Thiruvananthapuram | Kerala Chief Minister V D Satheesan on Wednesday said that one of the major reasons for the power crisis in the state was the previous government's decision to scrap the 25-year long power purchase agreement that the Oommen Chandy administration had entered into with private electricity producing companies.
Satheesan said that under the agreement, which was in effect for one year of the Oommen Chandy administration and seven years of the LDF government, power was being provided to the state at around Rs 4.29 per unit and it was applicable for 25 years.
"If that agreement was in existence now, the private power companies would have had to provide us with electricity and we would not have to look for it in the open market at the prevailing high rates.
'Moreover, electricity is not available for purchase in the open market as everywhere demand is high due to the El Nino weather phenomenon," the CM said at a press conference here after a cabinet meeting.
He further said that in addition to this, the water storage in the state's hydel power dams were at 28 per cent, as compared to 61 per cent last year, leading to a shortfall in electricity production, there was a 50-56 per cent reduction in rainfall this year and an increase of 800-1000 MW in power consumption by the state.
"All these factors contributed to the present crisis and it is not something the current government created. Why would a new government which has just come to power want the people to spend time in darkness by imposing power cuts?" he asked.
Satheesan said that after the Oommen Chandy government's power purchase agreement was scrapped, the Left administration brought electricity from private companies, including Adani, at rates ranging from Rs 8 to Rs 14 per unit.
He said that the agreement was scrapped on the recommendations of the Kerala State Electricity Regulatory Commission (KSERC) which comprised top CPI(M) leaders.
The CM said that the electricity crisis occurred within a month of the new government coming to power and it was taking steps to address the issue.
He said that the government has bought 200MW power from the open market for around Rs 5 per unit and was in the efforts to procure 200MW more at lesser rates.
Satheesan also said that the agreement was scrapped only after eight years by claiming procedural mistakes.
The CM also said that any failure in advance notification of power cuts by the Kerala State Electricity Board (KSEB) will be examined.