Sources said that the representatives of West Bengal State Electricity Board (WBSEB), Grid Corp of Orissa (Gridco), Damodar Valley Corp (DVC) have objected to the proposal of increasing the fixed charges and upward revision of tariff of NTPC power stations in eastern region with retrospective effect. They have made it clear that they are not in a position to pass on the arrears to their customers.

The commercial committee of EREB had recommended Rs 2.30 per kwh as export rate for eastern regionpower with effect from January 1999. Importing agencies raised objection to this rate. Subsequent to this, Central Electricity Authority (CEA) revised the rate to actual weighted average rate of NTPC stations of eastern region. Constituents of EREB did not agree to this CEA revised rate as they suffered heavy losses from July 1998 to December 1998 period.

EREB has decided that from January 1999 onwards, imports would be billed by NTPC at actual rates of different power stations of eastern region as per global accounting of EREB and EREB constituents will not bear any differential charges.

For the period from January 1998 to December 1998 a separate meeting would be convened by CEA along with the eastern regional constituents and importers to review the earlier rates for such export in the context of resultant losses suffered by exporters during the period.

Special secretary of the Union power ministry PK Baijal said the Centre is planning to make an institutional arrangement for evacuation of surpluspower from eastern region to other regions soon.

At present, eastern region has a peak period surplus of around 1300 mw to 1500 mw which goes up to more than 2500 mw during the off-peak period.State electricity boards of eastern region had been asked to identify the long term exportable surplus power based on available transmission capacity in various time-frame and convey to theCEA for examining the possibility of its allocation to states in neighbouring regions on a long term basis, Baijal said.

He said this is essential to estimate the quantum of power which could be evacuated and for which necessary transmission lines have to be constructed by the Power Grid Corporation of India.

He said a firm allocation will follow a firm drawl if tariff is fixed accordingly. The buying states will not buy unless power is cheaper than what is produced in its own state. Baijal said at present power rate is high because generation capacity is not properly utilised. For this, firm commitment for drawl is needed. Toensure this the power ministry is contemplating to fix tariff depending on firm commitments. In that case fixed cost has to be paid even if the committed drawl is not made.