The purchase of electricity at Rs. 20 per unit will damage the power sector as the gap between demand and output of electricity widens. The electricity Board has been obliged to acquire electricity from the open markets at exorbitant costs to cope with the situation as the gap between demand and generation of electricity in tamil Nadu continues to expand. Purchasing at 5 times the cost of manufacturing will cause the power plant to become unstable.

For the past few days, tamil Nadu's greatest electricity consumption has been about 13,500 MW. However, due to a large reduction in power output in tamil Nadu and the power supply of private firms that provided electricity, it has been compelled to apply severe power cuts. To avert this, the tamil Nadu government has been purchasing electricity on the open market for the past few days at excessive costs.

In the last few days, a total of 2,850 MW of electricity has been purchased. According to media reports citing tamil Nadu electricity Board officials, a unit of electricity was purchased from Rs. 17.77 to Rs. 20.00 on the 14th and from Rs. 12.98 to Rs. 20.00 on the 15th.

The tamil Nadu electricity Board generates thermal power at a cost of only Rs. 4.87 per unit. Funnel electricity costs 77 pence, while gas power costs Rs.2.81. The cost of producing thermal electricity was 5 times greater than the cost of purchasing electricity on the electrical market. The tamil Nadu electricity Board will be in irreparable disarray if this situation persists. This is the most serious setback.

In tamil Nadu, the government must prevent power disruptions. It can be accepted even if it is stated on behalf of the tamil Nadu government that there is no other option but to pay a higher price for electricity to avert a power outage. However, for the past 20 days, there have been hints of such a situation in tamil Nadu. However, due to a lack of coal, there would be no scarcity of electricity in tamil Nadu; the minister of Power and Energy has said repeatedly that there will be no power outages, even for a second.

Wind power compensates for the consequent gap. In early October, wind power typically decreases. wind energy, on the other hand, is still readily available in vast numbers. 6 crore units of wind electricity were accessible even yesterday. The same circumstance does not always persist. Even if wind power generation is curtailed and power supplied by private firms is cut, tamil Nadu could face power shortages in the coming days. 

The minister of Power also agrees that tamil Nadu has a 2500 MW power shortfall. To deal with it, plans are in the works to purchase electricity at a rate of Rs. 2.61 per unit. However, it is yet uncertain what he would do after resigning from his position. If a unit of thermal electricity costs Rs.2.61, the government makes a profit; however, is it available? Is a mystery.

Only one item needs to be considered by the tamil Nadu government and the electricity Board. The tamil Nadu electricity Board is already insolvent, owing Rs 1.59 lakh billion in debt. The electricity Board's efforts and activities will help to minimize the debt and the loss of the electricity Board. It should be kept on hand rather than in a magnifying glass.