The Hindu : New Delhi News : NDMC to ink power trading treaty

Online edition of India's National Newspaper
Monday, Dec 31, 2007
ePaper

New Delhi

New Delhi

NDMC to ink power trading treaty

Manisha Jha

To benefit consumers by reducing cost of electricity
“No direct payment to be made to PTC for power sale”

NEW DELHI: The New Delhi Municipal Council is on its way to ink a power trading treaty with the Power Trading Corporation of India that will be responsible for managing bulk power supply allocated to the civic body and selling surplus power in the market.

By enhancing the working efficiency of the NDMC electricity network, the agreement is likely to benefit consumers by way of an eventual reduction in the civic body’s cost of electricity.

The NDMC gave the go-ahead to appoint PTC for managing the bulk power supply allocated to the civic body this past week and is now awaiting the inking of the Memorandum of Understanding between the two bodies.

Said an NDMC official: “It is the first time that this concept of appointing an agency for sale of surplus power is being mooted by the civic body. The matter is presently awaiting the law department’s approval and once vetted by it, we will go ahead with the signing of the agreement with the requisite terms and conditions.”

According to the agreement, there would be no direct payment made to PTC for the sale of surplus power, however, it may bring more revenues to the NDMC by way of efficiently selling of the surplus power in the energy market.

Said the NDMC official: “Our surplus will be sold by PTC who will recover the cost from the buyers instead of the NDMC, hence it would mean no financial liability for us. Since we will be getting better rates for our net surplus electricity, our cost of electricity will be reduced, enabling us to pass on the benefits to our consumers,” he added.

According to the official, at present most of the surplus power sale was taking place without any control over the sale price since it was governed by the grid frequency. Moreover as per Delhi Electricity Regulatory Commission directives, surplus power of the NDMC has to be made available to other discoms of Delhi if they are short of power at cost price.

“Management of this system is also a complex procedure and we are finding it difficult to manage it efficiently since we are only licensed to distribute power and don’t have the license and the market presence to trade power.” At present the civic body has been allocated 350 MW of power from Badarpur Station.

Printer friendly page
Send this article to Friends by E-Mail

New Delhi