Congress, BJP warn of Statewide protests against power tariff hike

UDF and BJP demand LDF government reverse power tariff hike, citing mismanagement and detrimental impact on households.

The Congress-led United Democratic Front (UDF) and the Bharatiya Janata Party (BJP) have demanded that the Left Democratic Front (LDF) government reverse the power tariff hike or face aggressive street protests. 

Leader of the Opposition V.D. Satheesan accused the LDF of forcing ordinary households to pick up the tab for its criminal mismanagement of the power sector. 

Mr. Satheesan blamed the current power tariff hike on the LDF government’s decision to annul the advantageous power purchase agreement the Oommen Chandy government authored in 2014.

Mr. Satheesan said that as per the Oommen Chandy government’s agreement, the State would purchase power at ₹4.29 a unit for 25 years. The State benefitted from the agreement for nine years till the Pinarayi Vijayan government voided the contract without assigning any reason in 2023.

Mr. Satheesan said the “out-of-the-blue” decision caused the State to purchase power at a higher and barely affordable tariff, ranging between ₹8 and ₹12 per unit. He added that the Kerala State Electricity Board (KSEB) suffers a loss of an estimated ₹15 crore per day. So far, the cancellation of the 2014 agreement has cost the public exchequer an estimated ₹2,000 crore. He said the government’s move was a sly bid to tide over the self-inflicted loss. 

Mr. Satheesan said the power tariff hike would exacerbate the cost of living crisis. High property taxes, unchecked seller inflation, and the government’s failed market intervention policies have upended household budgets.

Kerala Pradesh Congress Committee (KPCC) president K. Sudhakaran, MP, said the unjustified power price hike had pushed the Congress to attack the government.