Tamil Nadu faces political clash over costly emergency power purchases

Tamil Nadu has agreed to pay up to Rs 37 for a unit of electricity in an emergency move to avoid power cuts during a hot October. The state government says the high cost is necessary because demand has spiked while supply has dropped. Opposition parties claim the situation is the result of poor planning.

The Shortage

Evening peak demand hit 20,527 megawatts on Monday according to State Load Despatch Centre figures, while off-peak demand stood at 17,037 megawatts. Energy Minister CTR Nirmal Kumar stated that total demand reached 21,700 megawatts against a supply shortfall of about 1,850 megawatts from central plants. Wind generation dropped to about 500 megawatts compared to a contracted 3,500 megawatts. To cover this gap, a TNPDCL tender sought 4,500 megawatts of emergency power for October 12 to 31, leading to accepted evening bids including 181 megawatts at Rs 37 per unit.

Political Clash

AIADMK and DMK leaders have criticized the purchases, questioning why private suppliers are favored and noting that neighboring Andhra Pradesh secured cheaper power. AIADMK general secretary Edappadi K Palaniswami demanded the agreement be withdrawn, while former minister PTR Palanivel Thiaga Rajan alleged administrative failure. Minister Nirmal Kumar rejected these claims, blaming the previous administration for failing to secure long-term agreements and adding that the state plans to tender thousands of megawatts in long-term contracts.

Context

Emergency power markets often charge very high rates when unexpected weather drives up electricity use faster than local utilities can generate it. State power companies typically try to balance long-term contracts with seasonal purchases to keep lights on without straining public finances.