The Hindu : New Delhi News : DERC asked to draft policy mandating discoms to generate power

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Wednesday, Aug 08, 2007
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DERC asked to draft policy mandating discoms to generate power

Staff Reporter

To ensure there is no gap in demand and supply of power, no load-shedding

NEW DELHI: Making an early start to ensure that there is no yawning gap in demand and supply of power and also no load-shedding in the Capital after the year 2012, the Delhi Government’s Power Department wants the Delhi Electricity Regulatory Commission to draft a policy that mandates power distribution companies to generate power.

“We have managed to reduce the gap in demand and supply of power considerably and with the existing arrangements there is enough power for the city till 2012. But with the demand for power increasing and expected to rise substantially after 2012, we want the DERC to direct the discoms to make provisions for the setting up of power generation units, so that there is no shortfall,” said Principal Secretary (Power) Ramesh Mehta.

With Delhi Transco Limited having made its intentions of not procuring power for the discoms clear, the onus for meeting the city’s needs has now fallen on the distribution companies.

“We want the DERC to make sure that the demand for power is met by the discoms. And the work to set up generation units is begun and completed on time. Routinely resorting to load-shedding is not an option to bridge the demand supply gap,” Mr. Mehta said.

Since the Delhi Cabinet has already given its assent to the proposals put forth by the discoms to set up power plants in the city, the DTL wants the DERC to make public a policy on power generation so that the discoms can begin work to establish their generation units.

Stipulating that “load-shedding as a measure of bridging demand supply gap is to be avoided at all costs even in peak demand scenario”, the Power Department wants the discoms to make their own power requirement forecasts and load growth in their areas. The Electricity Act, 2003, allows the discoms to make arrangements to generate power.

Tie up

“The department has asked DERC to instruct the discoms to tie up with other generating companies to meet Delhi’s future power needs and to ensure that the peak demand is also met along with the normal demand,” said a Power Department official.

From April 1 this year the discoms have started buying power on their own instead of procuring it from DTL.

The Delhi Power Procurement Group consisting of the distribution companies sells and purchases power on a daily basis to meet the requirement of their license areas.

“After Delhi becomes surplus in power in the next few years, the DPPG will be wound up if it is found to be superfluous by the distribution companies. The distribution companies can buy power from other generating companies including merchant power plants, which are being encouraged by the Union Government. They can also establish their own power plants in or around Delhi or far away from Delhi and transmit it to their license areas,” the official said.

Energy conservation

DERC has also been asked to set up “effective mechanism for promoting energy conservation and energy-efficiency measures and make the discoms play a proactive role in promoting energy conservation and energy efficiency by making such measures as part of their tariff orders wherever considered feasible”.

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