Discom spent additional Rs 13K crore to buy more power than okayed in ’23-24

CHENNAI: Tamil Nadu Power Distribution Corporation Limited (TNPDCL) purchased 82,906 MUs of electricity at a cost of Rs 55,754 crore in 2023-24 while Tamil Nadu Electricity Regulatory Commission (TNERC) had approved the purchase of only 73,730 MUs for Rs 42,575 crore. This resulted in an excess procurement of 9,176 MUs and an additional expenditure of Rs 13,179 crore.

According to the recent True-Up order given on April 30, the discom was allowed to purchase 40,686 MUs from central generating stations but managed to get only 37,661 MUs. On the other hand, it exceeded the limit in other areas. While TNERC had approved 1,961 MUs from independent power producers (IPPs) at Rs 1,094 crore, the discom purchased 4,236 MUs at Rs 2,938 crore — an additional expenditure of Rs 1,844 crore.

Similarly, in the case of power exchange purchases, TNERC had given permission for 4,428 MUs at Rs 4,170 crore. But the discom procured 8,606 MUs for Rs 7,953 crore. The commission has raised concern over the sharp rise in power purchase cost, saying it does not match the values approved in the previous tariff order. Responding to TNERC’s queries, TNPDCL said the increase was mainly due to a revision in fixed charges by central generating stations and a hike in energy charges passed through by the generators.

A senior official from TNPDCL said the state is witnessing a steady rise in electricity demand due to increasing population and economic growth. “The discom is also facing serious challenges in meeting the evening peak hour demand,” the official said.

To avoid unexpected expenses and ensure a reliable power supply, TNPDCL is now preparing a resource adequacy plan (RAP), following instructions from the union government. The plan aims to ensure cost-effective and uninterrupted electricity by carefully planning power generation and transmission to meet future demand.

The official said the RAP will cover areas such as demand forecasting, resource planning, power purchase, and performance monitoring. It also focuses on helping the state move towards more renewable energy while keeping the power grid stable. The discom has decided to frame the plan for the period up to 2031-2032, he added.