A day without electricity is unimaginable for the populace of today. Electricity is the driving force of the thriving economic activities around us. The deficiency of electrical energy can open a Pandora’s box of troubles for Kerala which is already lagging behind in industrial development in the country. The present study makes use of both cross sectional and time series data to analyse the generation and consumption of electricity in Kerala by calculating the compound annual growth rates and instability indices of various significant variables in electrical energy sector. The study also analyses the residential electricity consumption pattern of Kalamassery municipality by using Ordinary Least Square (OLS) estimation.