Patiala: Restoring our old verdict Punjab State Electricity Regulatory Commission (PSERC) Review petition is dismissed PSPCL and refused to approve the ongoing power purchase agreements (PPAs) with five generating stations, calling it not economically viable due to the high cost of power.
The Commission did not allow purchase of total 885.10 MW power from DVC generating stations (Durgapur, Raghunathpur and Bokaro), Pragati Gas Power Station (Bawana) and Meja Urja Nigam Private Limited (MUNPL) on high cost of power. Despite the cheap electricity available in the market, it was purchased from these stations.
The commission, however, said that it has already given to Punjab State Electricity Corporation Ltd. (PSPCL) is at liberty to renegotiate the viable rates for power plants including MUNPL and seek the approval of the Commission.
In February this year, PSERC did not allow purchase of power from these generating stations, but three months later, PSPCL filed a petition with PSERC to review its orders, stating that the power from these generating stations was a were being determined on month to month basis and even during non. The average power fixed during 2018-19 and 2019-20 from paddy season and DVC Durgapur, Raghunathpur and Bokaro were 83.4 per cent, 86.4 per cent and 94.2 per cent respectively of the availability declared by DVC. PSPCL claimed that the variable cost of these power stations was low and insisted that other generating stations with which PSPCL has a long-term contract may be able to supply power as an alternative to these five generating stations but with higher variable cost. Feather.
PSERC, however, in its recent orders, observed that it has neither prescribed nor prescribed any benchmark for variable cost in its earlier orders dated February 2021.
Notably, PSPCL has signed long term PPAs with some private power producers without obtaining approval from PSERC despite being mandated under the rules. However, in 2019, PSPCL sought approval of certain PPAs from the Commission.
The PPA with Damodar Valley Corporation (DVC) Kolkata was signed in 2006 and the State Electricity Corporation started scheduling power from Durgapur, Raghunathpur and Bokaro thermal stations from 2012, 2016 and 2018 respectively. PSERC found that the power purchased from these stations ranged from Rs 4.39 to Rs 5.53 per unit. It said, “The Commission has approved the PPA in respect of power stations having per unit rate (fixed + variable) less than Rs. Rs. or more.”
The Commission observed that PSPCL surrendered 8571 Million Units (MU) and 15546 MUs during 2018-19 and 2019-20 respectively from thermal and gas power stations including DVC power stations.
Similarly, Pragati Power Corporation Limited (PPCL) PPA between Himadri and PSPCL was signed in 2008 and power has been supplied since December 2011, while the PPA between MUNPL, Allahabad and PSPCL was executed in December 2010 .
Supplying power to PSPCL for the past several years, the private producers submitted before the Commission that there was no need for approval of the PPA as the power purchase has already gone through a regulatory process and the cost by PSERC in the total revenue report. reflected and approved. (ARR).
To this, the Commission emphasized that provisional approval of estimates for purchase of power in annual tariff orders for distribution utilities cannot be construed as approval of the PPA, and, at the most, attributed it as approval of estimates. can go. The cost and quantum of electricity purchase for that one year.
Paramjit Singh, Director Generation, PSPCL said, “I am yet to read the order completely and I will act accordingly.
A senior retired official of PSPCL said, “This clearly shows the dual stand of PSPCL which in June had filed a review petition with PSERC to approve the higher PPAs, but later in the month of August, it took a political stand. There was a demand to cancel the PPA with DVC after the pressure increased.”
The Commission did not allow purchase of total 885.10 MW power from DVC generating stations (Durgapur, Raghunathpur and Bokaro), Pragati Gas Power Station (Bawana) and Meja Urja Nigam Private Limited (MUNPL) on high cost of power. Despite the cheap electricity available in the market, it was purchased from these stations.
The commission, however, said that it has already given to Punjab State Electricity Corporation Ltd. (PSPCL) is at liberty to renegotiate the viable rates for power plants including MUNPL and seek the approval of the Commission.
In February this year, PSERC did not allow purchase of power from these generating stations, but three months later, PSPCL filed a petition with PSERC to review its orders, stating that the power from these generating stations was a were being determined on month to month basis and even during non. The average power fixed during 2018-19 and 2019-20 from paddy season and DVC Durgapur, Raghunathpur and Bokaro were 83.4 per cent, 86.4 per cent and 94.2 per cent respectively of the availability declared by DVC. PSPCL claimed that the variable cost of these power stations was low and insisted that other generating stations with which PSPCL has a long-term contract may be able to supply power as an alternative to these five generating stations but with higher variable cost. Feather.
PSERC, however, in its recent orders, observed that it has neither prescribed nor prescribed any benchmark for variable cost in its earlier orders dated February 2021.
Notably, PSPCL has signed long term PPAs with some private power producers without obtaining approval from PSERC despite being mandated under the rules. However, in 2019, PSPCL sought approval of certain PPAs from the Commission.
The PPA with Damodar Valley Corporation (DVC) Kolkata was signed in 2006 and the State Electricity Corporation started scheduling power from Durgapur, Raghunathpur and Bokaro thermal stations from 2012, 2016 and 2018 respectively. PSERC found that the power purchased from these stations ranged from Rs 4.39 to Rs 5.53 per unit. It said, “The Commission has approved the PPA in respect of power stations having per unit rate (fixed + variable) less than Rs. Rs. or more.”
The Commission observed that PSPCL surrendered 8571 Million Units (MU) and 15546 MUs during 2018-19 and 2019-20 respectively from thermal and gas power stations including DVC power stations.
Similarly, Pragati Power Corporation Limited (PPCL) PPA between Himadri and PSPCL was signed in 2008 and power has been supplied since December 2011, while the PPA between MUNPL, Allahabad and PSPCL was executed in December 2010 .
Supplying power to PSPCL for the past several years, the private producers submitted before the Commission that there was no need for approval of the PPA as the power purchase has already gone through a regulatory process and the cost by PSERC in the total revenue report. reflected and approved. (ARR).
To this, the Commission emphasized that provisional approval of estimates for purchase of power in annual tariff orders for distribution utilities cannot be construed as approval of the PPA, and, at the most, attributed it as approval of estimates. can go. The cost and quantum of electricity purchase for that one year.
Paramjit Singh, Director Generation, PSPCL said, “I am yet to read the order completely and I will act accordingly.
A senior retired official of PSPCL said, “This clearly shows the dual stand of PSPCL which in June had filed a review petition with PSERC to approve the higher PPAs, but later in the month of August, it took a political stand. There was a demand to cancel the PPA with DVC after the pressure increased.”
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