Buying power from exchange not long-term solution: DERC chief

Buying cheaper electricity from power exchange is not a long-term solution for Delhi and power purchase agreement with the generators cannot be wished away, Delhi Electricity Regulatory Commission (DERC) Chairman PD Sudhakar said on Thursday.

Elaborating on Delhi’s power status, Sudhakar said it “is wrong to carry this impression that we can have <g data-gr-id="22">day-to-day</g> purchase of power on a short notice from power exchange” to meet Delhi’s heavy demands. “We have long-term power purchase agreement with the generators to the extent of 6,000 MW, which is the peak demand during summers. The rates in power exchange are quite low, which is around Rs 2,” Sudhakar said.

“It raises curiosity in <g data-gr-id="20">mind</g> of anybody that why purchase it under long-term power purchase agreement at Rs <g data-gr-id="21">4-5,</g> when power is available at Rs 2-3 at power exchange. In power exchange, there is no guarantee that we will get <g data-gr-id="19">power</g> of this volume of 4,000 MW or 2,000 MW,” he said. 

“It may happen occasionally that you may not be able to procure what you need especially in summers. So, we cannot do away with <g data-gr-id="23">power</g> purchase agreement,” Sudhakar said at a conference on ‘Affordable 24x7 Power to All @2019,’ organised by ASSOCHAM. His statement came after the Delhi government has proposed to the Central government to surrender 2,255 MW electricity it buys at a high rate from CPSUs.