The Hindu : New Delhi News : Economics behind power cuts

Online edition of India's National Newspaper
Wednesday, Jan 12, 2005

New Delhi

New Delhi

Economics behind power cuts

By Lalit K. Jha

NEW DELHI, JAN. 11. It is not non-availability of electricity or low frequency in the grid, but power economics which is being cited as the major reason for the Capital's electricity woes this winter.

The three discoms along with Delhi Transco resort to abrupt power cuts every time the cost of electricity per unit they purchase goes up. After privatisation, BSES Rajdhani Power was made responsible for distribution of electricity in South and South West, BSES Yamuna Power in East and Central, and the North Delhi Power Limited in North and North-West parts of the Capital.

A year ago, power utilities resorted to load-shedding only after frequency in the Northern Grid fell below 48.5 Hz. "This was done deliberately to protect the grid and save the system from tripping," said a top Delhi Transco official.

However, following privatisation and strict enforcement of the Availability Based Tariff (ABT) regime, the discoms resort to power cut as soon as the frequency falls below 49 Hz. "This is because, the cost of electricity purchased increases several times compared with normal circumstances. Thus to save money, we resort to abrupt load-shedding," said a senior discom official, speaking on condition of anonymity.

"It is pure economics which is now deciding the frequency of power cuts in Delhi and not low frequency or non-availability as was the case in the past. We do not want to bring financial losses to our company," the official argued.

Probably, this is the reason why despite the frequency never touching 48.5 Hz, the Capital today experienced hours of unscheduled load-shedding throughout the day.

The NDPL spokesman said we resorted to unscheduled rotational load-shedding today from 9 a.m. to 1 p.m. because of low frequency in the grid. Among the areas worst hit were Rohini, Pitampura, Mangolpuri, Sultanpuri, Ashok Vihar and Buddh Vihar. Officials of the Northern Regional Load Dispatch Centre denied the charges and said there was no frequency problem in the region today.

In its official statement, BSES also blamed low frequency in the grid and massive shortfall from the adjoining feeder stations for the load-shedding. Areas like Defence Colony, Saket, Okhla, Tughlakabad, Badarpur and the Walled City had power cuts, at times for over five hours at a stretch. A senior Delhi Transco said: "The power utilities in the Capital are not here for any charity. The companies are here to do business and make profit. If they are convinced that power supply was a loss-making proposition, they would cut their supply till the time it became profitable. This is what is being done this winter."

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