Karnataka state Energy Department has invoked emergency powers under Section 11 of the Electricity Act making it mandatory for all power generators, including the co-generation units, in the state to sell their power to the state grid at the tariff fixed by the government. Under the open access system, at present prevailing in the country, all generators are allowed to enter into power purchase agreements with any buyer and sell power.

As per the energy survey of the Union Ministry of Power, while demand is expected to be 8228 megawatt (MW), supply is expected to be around 5939 MW, leading to a gap of about 2300 MW.

The previling situation in Karnataka warrants special measures to protect the public interest. The power crisis has been increased by poor water levels in Linganmakki, Supa and Mani dams. Along with that, there has been a drastic reduction in the availability of power to Karnataka from the central generating stations.

As against the expected share of 1542 MW daily, on an average, only about 1000 MW is being received, resulting in a shortage of about 500 MW. The unreliable power supply from the 500 MW Bellary thermal power station has increased the problems of the state.