Purchasing electricity from private company will cause huge loss to state: P. Rajeev

Senior CPI leader P. Rajeev on Thursday opposed the state government's decision to purchase electricity. He alleged that Chief Minister V. D. Satyanathan has hidden facts and that purchasing electricity from a private company would cause more loss to the state than purchasing it from Himachal Pradesh. According to a Hindustan Times report, Rajeev told reporters that the decision to purchase electricity through a private trading platform would lead to large-scale corruption.

This controversy began after a press conference by Chief Minister Satyanathan on Wednesday. The Chief Minister claimed that procuring electricity through a private trading platform would save the state ₹2,232 crore. The Chief Minister stated that according to one proposal, electricity was to be obtained from Himachal Pradesh through the Power Trading Corporation of India Limited at a rate of ₹14.50 per unit, whereas GNA Energy offered a rate of ₹8.63 and ₹8.90 per unit. GNA Energy is a digital over-the-counter platform that brings together potential buyers and sellers of electricity.

P. Rajeev termed these claims of the Chief Minister as 'lies'. He argued that electricity would have to be purchased from GNA for the entire period, including non-peak hours, during which the electricity generated by the state is more than the requirement. Rajeev added that the state already surrenders surplus electricity during non-peak hours, and if purchases are now made from a private platform, they would have to surrender that surplus electricity as well or sell it at a lower price, which would cause loss to the state.

Rajeev clarified that Himachal Pradesh provided electricity only during peak hours, not during the day. He claimed that even if the state sells the surplus electricity produced during the day at a rate of ₹2.5 per unit and purchases electricity from Himachal Pradesh at a rate of ₹14.50, the state would still save at least ₹250 crore. He stated that this information is according to a letter sent to the government by M. G. Rajamanickam, former Chairman of the Kerala State Electricity Board.

The CPI leader questioned why the government wants to enter into such an agreement in haste without a tender and whether the Regulatory Commission has recommended purchasing electricity from a private platform. In his opinion, it would be more profitable for the government to purchase electricity from the power exchange as per the state's requirements.