The Hindu : New Delhi News : Power companies approach CERC against DVC

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Wednesday, Jan 13, 2010
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Power companies approach CERC against DVC

Staff Reporter

NEW DELHI: With the much awaited power from the Damodar Valley Corporation nowhere in sight, the Capital’s distribution companies have now sought intervention of the Central Electricity Regulatory Commission. The three discoms -- NDPL, BRPL and BYPL -- have petitioned the CERC to get DVC to adhere to the terms of an agreement signed earlier.

According to discom sources, DVC has failed to stick to the agreement signed in 2006 for providing the city 400 MW of power. The discoms allege that DVC has been “offering power sporadically and in very small quantities”.

“A lot of Delhi’s power problems would be solved if DVC were to honour its commitment. We have been petitioning them, reminding them and the Central Government too has taken up the issue from time to time with DVC, but there has been no change in the situation,” said a discom official.

Referring to DVC’s defence of low production on account of coal shortage, discom sources said: “If the production is low, then why does DVC not rationalise the power that it sells to other States? DVC has been meeting the commitment to other States while Delhi is the only city where instead of the promised 400 MW, we get between 25-50 MW on some slots.”

Officials said DVC has been supplying between 2,500-2,600 MW to the other States that it has inked agreements with. The discoms are unhappy that they have to face a shortfall on account of the non-availability of power from DVC, and also have to shell out more money to make last minute arrangements. “Because we have to make purchases on short term, we end up paying more money. In summer the company had to procure power for as high as Rs.16, while in winter the rates are again high at Rs.9.50. The power that we could have had at Rs.3 per unit has to be purchased at almost three times the price, all because DVC has not adhered to the agreement,” said another discom official.

As per the agreement, DVC would start supplying power to Delhi from October 2007 onward.

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