Purchasing electricity from private platform will cause ₹727 crore loss: Elamaram Karunakaran

Serious allegations have been made against the UDF government in Kerala regarding attempts to purchase electricity through private trading platforms. The Electricity Employees Federation of India (EEFI) has demanded an independent inquiry into the entire matter. Elamaram Karunakaran, National President of EEFI and senior CPI(M) leader, stated that the government is insisting on purchasing electricity via private platforms, ignoring the advice and objections of the Kerala State Electricity Board (KSEB).

According to a report by The Hindu, Elamaram Karunakaran alleged that the state government is planning to purchase 500 MW of electricity from the GNA Energy OTC platform at a rate of ₹8.63 per unit. According to Karunakaran, this decision will not only increase the additional economic burden but will also fail to meet the state's peak-hour electricity requirements. He further added that the UDF government has completely ignored all objections raised by KSEB in this regard.

Providing more details on the matter, Elamaram Karunakaran said, "It has been learned that Electricity Minister Sunny Joseph was in favour of KSEB and had supported the Board's stance, but his decision was overruled." He clarified that KSEB had calculated that this private purchase would result in an additional financial liability of ₹727 crore for the state. KSEB had informed the government in advance about this statistical data and the resulting loss. Nevertheless, Karunakaran alleged that the manner in which the government remains adamant about this scheme points towards some ulterior motives.

Amidst this controversy, administrative changes have also been observed. Elamaram Karunakaran stated that IAS officer M.G. Rajamanickam, who was the Chairman and Managing Director of KSEB, was transferred on Monday. Karunakaran claims that Rajamanickam did not agree with the government line and was removed from the post for not following the government's orders.

Apart from electricity procurement, Elamaram Karunakaran also expressed deep concern over the delay in the implementation of the second phase of smart electricity meters. He noted that it is taking a long time to issue work orders for the second phase of smart meters, while the bid validity is expiring on 11 November. Karunakaran stated that months ago, KSEB had approved the lowest bid for the second phase implementation covering 50 lakh customers under the CAPEX model.

He expressed suspicion that an attempt is being made to weaken the CAPEX model, as this model helps ensure cost-effective smart meter services for the people of Kerala. As per the demand made by EEFI, both issues—the private purchase of electricity and the delay in smart meter work—have a direct impact on public interest and public funds. Therefore, an independent and transparent inquiry is essential to bring out the truth.

In this entire sequence of events, the EEFI has registered strong protest against the government, levelling serious allegations that the professional opinions of KSEB were ignored and pressure was exerted on administrative officers.