Kerala power crisis: Regulatory panel urges KSEB to ‘improve’ electricity demand forecasts
The Kerala State Electricity Regulatory Commission has directed the state's electricity board to improve its demand forecasting to avoid financial liabilities and operational challenges. The commission emphasized the need to optimize power procurement by leveraging cheaper solar energy during daylight hours.
Why it matters
Efficient energy management is critical for state utilities to maintain affordable retail tariffs and prevent power crises.
As Kerala continues to battle a monsoon-season power crisis, the Kerala State Electricity Board (KSEB) has been advised to improve its forecasts of the State’s power demand.
The Kerala State Electricity Regulatory Commission (KSERC), in a recent order allowing the KSEB to procure 200 MW for a one-year period, noted that there is a need to improve the demand forecast that reflects “the major influencing variables.”
Any decision on power purchase based on incorrect demand and supply position is likely to result in significant operational challenges and a financial liability that ultimately gets reflected in retail tariff of the consumers, it said.
The commission headed by T.K. Jose was of the opinion that the core committee of the KSEB, which finalises decisions regarding power purchases, has not evaluated the impact of the proposed power purchase on the utility’s finances and the impact on retail tariff.
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