EconomyGS-IIIGS-II· 1 min read
Kerala's Power Crisis and Contract Cancellations
Why in news?
Kerala State Electricity Board (KSEB) is urging consumers to reduce electricity usage during peak evening hours due to soaring consumption and a stressed power network. Simultaneously, allegations of corruption in the cancellation of long-term power supply contracts (DBFOO) are being raised, with promises of a probe if the opposition comes to power.
Key points
- KSEB requests consumers to regulate electricity use, especially during evening peak hours (post 6 p.m.).
- Soaring summer consumption is straining Kerala's power transmission and distribution network.
- Voltage issues are being reported in some areas.
- Opposition alleges corruption behind the cancellation of 465 MW DBFOO power supply contracts as a cause for current power restrictions.
- Opposition promises a probe into the contract cancellations if they come to power.
Background & context
Power distribution companies often face challenges managing peak hour demand, especially during hot weather. The DBFOO model (Design, Build, Finance, Own, Operate) is a type of public-private partnership for infrastructure projects.
★ Prelims fact capsule
DBFOO contracts are designed for long-term power supply agreements.
✎ Mains relevance
GS Paper III: Infrastructure, Economy. GS Paper II: Governance, Public Accountability.