Power purchase spending in 2026-27 could go up by ₹1,596 crore, KSEB’s latest estimates show
The Kerala State Electricity Board (KSEB) has projected a significant increase in power purchase costs for the 2026-27 fiscal year, citing a supply-demand deficit. The utility is seeking regulatory approval for a revised expenditure estimate to cover peak demand requirements.
Why it matters
Rising energy costs and supply deficits pose a challenge to state-level utility management and could lead to higher electricity tariffs for consumers.
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.
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