The Hindu : New Delhi News : Discoms selling power at higher prices to States

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Sunday, Mar 30, 2008
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Discoms selling power at higher prices to States

Smriti Kak Ramachandran

But they are yet to finalise power arrangements for Delhi

The three discoms recently sold 300 million units to PTC for Rs.8.40 per unit
‘There has been reminders to concretise the power purchase deals for the summer’

NEW DELHI: The Capital’s power distribution companies which have been petitioning the Government for assistance -- from soft loans to a share in the unallocated power -- have been selling electricity to other States at a premium. They are, however, shying away from making expensive purchases to meet Delhi’s demand.

The three discoms recently sold 300 million units to the Power Trading Corporation for Rs.8.40 per unit but quoted a low Rs.5.85 per unit when it came to bidding for power from Himachal Pradesh.

According to sources in the Government, the discoms have sold 301 million units of power in February and 239 million units till March 27. Referring to the sale of power, a source said: “The discoms have sold power for as high as Rs.8.40 per unit and as low as Rs.6.42 per unit. But surprisingly they quoted a very low figure while bidding for power from Himachal Pradesh, even though they are aware of the cost of power having risen significantly in the market.”

Sources said even as there had been reminders from the Government to concretise the power purchase deals for the summer, the discoms are behind schedule in firming up the sale-purchase agreements.

Taking note of this delay in finalising the power arrangements for the summer, Delhi Chief Secretary Rakesh Mehta has scheduled a meeting with the discoms next week, sources said.

“The discoms have been asked to clean up their act. They have been quick to take refuge behind a cash crunch, but slow in tying up deals. Also, BYPL and BRPL have not been able to recover Rs.300 crore from Uttar Pradesh and Jammu and Kashmir for unscheduled inter-change payments. If this money is recovered, it can be used to purchase power,” said sources.

Listing some of the major transactions in the past two months, sources said 78.78 million units had been sold to Rajasthan through PTC, 18.91 million units were supplied to Jaipur Vidyut Vitran Nigam Limited, 92 million units to APPC and 13 million units to Tatas (Uttar Pradesh Power Corporation Limited)

A senior official of the Delhi Government, however, said the discoms could not be “blamed” for being reluctant to purchase expensive power because of the “recent judgment by the Delhi Electricity Regulatory Commission”.

“The DERC,” he added, “has not given them the incentive for having purchased expensive power. It has, in fact, refused to admit their purchases, which were costly. To ensure that the discoms do not hesitate in investing in purchase of power, the DERC must review its decision.”

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