Tata discom seeks to reallocate its power purchase agreement

Power consumers in north Delhi may soon feel the heat, as Tata Power Delhi Distribution Limited (TPDDL) looks to recover losses worth Rs 5,000 crore, which in all likelihood could translate into higher tariffs.

TPDDL chief executive officer Praveer Sinha further said that requisitions have been sent to Delhi Electricity Regulatory Commission (DERC) and they’ve laid these documents down on their official website.

The Tata Power Delhi Distribution Limited (TPDDL) is seeking to reallocate its power purchase agreements with some of the gas and coal based power plants from where it is purchasing power at very expensive rates.

The average power purchasing cost which is Rs 5.66 is expected to come down to Rs 5.10 if the Union Power Ministry accepts the company’s proposal, the company’s CEO and Executive Director Praveer Sinha said on Wednesday.

Some of the power plants with which the company is seeking to reallocate its power purchase agreements include - Anta (13 MW), Auriya, (21 MW), Dadri Gas (27 MW), Bawana (60 MW), GT (60 MW), Pragati (66 MW), Aravalli (100 MW), Rajghat (40 MW).

The biggest gas plant, the 1,500 MW Bawana power plant, able to produce only up to 320 MW when fully functional, is almost non functional due to the non-availability of gas and the electricity production is very costly.

One of the primary reasons behind the company’s move is the gas price revision which will come into effect after the elections get over and make the power purchasing cost to go up substantially high, impacting the generation cost of power. Ahead of summer, TPDDL has made necessary arrangements to keep a check on power outages.

During the peak summer months like May and June, the demand of power in Delhi is expected to rise to 6100 MW, for which the company has enhanced call centres manpower, put additional 24x7 break down crews with vehicles along with enough spares of distribution equipment like DTs, switch gears and relays.

‘More grids and power stations which have just been commissioned to distribute the load as to deal with overleading during the peak season is a major challenge,’ said Sinha.

As a short term plan, the company is relying on banking of power of as much as 200 MW which is like a barter system of power.

During the surplus power situations, the company provides power to states like Jammu and Kashmir, Uttaranchal and Madhya Pradesh. These states return the power to TPDDL during the summers. On the status of CAG audit, Sinha said, ‘The company is cooperating with CAG audit which is going on smoothly. We are responding to all the requisitions by the auditor on time.’

‘The CAG is not just doing a financial but complete propriety audit, we have shared documents related to tariffs, tariff orders, finance, regulations and power purchase agreements, asset capitalization, billing, invoicing and transaction details,’ he added.