The State of Kerala on Monday urged the Supreme Court to urgently hear its appeal challenging an order of the Appellate Tribunal for Electricity (APTEL) concerning long-term power purchase agreements, citing the ongoing power crisis and the financial burden caused by the State having to procure electricity from the market at higher rates.

Senior Advocate Jaideep Gupta, appearing for the State submitted before a bench headed by Chief Justice of India Surya Kant that there was an immediate urgency in taking up the matter.

“The urgency is this that the power supply agreement, which was not approved by the APTEL, as a result of which the State has to buy power from the market at excessive rates,” Gupta submitted.

CJI Surya Kant agreed to list the appeal on an early date.

In 2023, the Kerala State Electricity Regulatory Commission (KSERC) had cancelled four Power Purchase Agreements entered into by the Kerala State Electricity Board Ltd in 2014, because it found procedural violations in the way KSEB had conducted the 2014 competitive bidding and awarded the contracts. The four agreements covered 465 MW: 115 MW and 100 MW from Jhabua Power Ltd, 150 MW from Jindal Power Ltd, and 100 MW from Jindal India Thermal Power Ltd.

The State, in response, invoking powers under Section 108 of the Electricity Act, directed the KSERC to reconsider the decision. Following that, the KSERC recalled it earlier decision and approved the agreements.

The APTEL however set aside the KSERC's order. The matter then reached the Supreme Court. In October 2024, in Kerala State Electricity Board Ltd Versus Jhabua Power Limited and Others, the Supreme Court held that the Electricity Regulatory Commission is not bound by the State Government's directions, and restored the original order of the KSERC, which cancelled the power agreements, by leaving open the appeal remedy.

In the second round, the APTEL, in February 2025, approved the KSERC's original order, rejecting the KSEBL's appeal. The State, in July 2025, filed an appeal in the Supreme Court against the APTEL order.

According to the State's application, the additional liability arising from the power shortage has reached approximately Rs 12,570 crore.

Case : STATE OF KERALA Vs KERALA STATE ELECTRICITY REGULATORY COMMISSION KSERC | C.A. No. 9600/2025