PSPCL in soup as power cost in market rises by 54%

PATIALA: The sudden rise in the cost of power in the open market seems to have become a cause of concern for the Punjab State Power Corporation Limited (PSPCL) as this might increase its power purchase bill during the current fiscal.
The prevailing price of per unit cost of electricity in the open market has already shot up by around 54% as compared to what was in February. Power is now available at an average rate ranging between Rs 3.38 per unit to Rs 4.7, depending on peak and non-peak hours. The rates have even gone up to Rs 8 a unit during the peak hours. In February, the average cost of a unit was Rs 2.56. According to highly placed sources in the PSPCL, the average cost at which PSPCL is likely to buy power has been calculated at Rs 4.5 per unit.

According to the multi-year tariff petition (MYTP), the PSPCL has projected a requirement of 58,299.84 million units (MU) to meet state’s power demand in the current fiscal year. The power available from state’s own generation is 13,379.71 MUs, which includes 5,069.05 MUs from state-owned thermal power plants, 4,515.52 MUs from hydro plants and 3,795.14 MUs from the state’s share in BBMB projects. The remaining 44,920.13 MUs are to be bought from independent power producers (IPPs) that are operating from within the state with whom it has power purchase agreements (PPAs). According to its planning, the PSPCL is expected to spend Rs 18,864.56 crore on power purchase during the current fiscal.

With the shutting down of thermal units at Bathinda and Ropar, the PSPCL is now short of 880 units. While it says it has already made arrangements to buy around 1,000 MW of power at cheap rate for which agreements have been signed, but any unscheduled purchases made during the peak paddy sowing season to meet the increased demand will increase PSPCL’s power purchase bill.

Chairman-cum-managing director of the PSPCL A Venu Prasad had recently said the power corporation had already signed PPAs with Damodar Valley Corporation from where the state will get 250 MW at Rs 3.9 a unit, 200 MWs from the Power Trading Corporation at Rs 3.50 a unit and 150 MW is being arranged from the Solar Energy Corporation of India. Besides, 250 MWs will also be placed at the disposal of the PSPCL from the solar plants set up within the state. However, sources claim that due to reduced generation capacity of 880 MW, the PSPCL will have to make purchases from the open market.0