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Vandana Saxena
Mumbai, Aug 16: The Dabhol Power Company (DPC) continues to be the costliest supplier of electricity to the Maharashtra State Electricity Board (MSEB) despite the fact that cost per unit has reduced with increase in offtake.
MSEB needs to pay around Rs 4.25 per unit for electricity bought in July, which is considerably higher than what it pays to other utilities like the National Thermal Power Corporation, Nuclear Power Corporation, etc. DPC has charged MSEB around Rs 131.50 crore for around 310 million units of energy supplied in July, sources said.
MSEB and DPC have not officially divulged the figures. According to sources, with elections around the corner, the board is under severe political pressure to keep its lips sealed on the issue. MSEB officials maintained this information was confidential despite repeated requests on the phone and fax. Reply to a faxed questionnaire to DPC is awaited.
The cost of DPC power will vary every month depending on the quantum of purchase made by MSEB. This isbecause both have agreed on certain payment criteria in the power purchase agreement (PPA).
Some conditions in the PPA which affect tariff include fixed capacity charges, payment linked with plant availability and load factor. The rupee-dollar exchange fluctuation will also impact tariff as it is quoted in dollars.
The per unit cost of power for July seems lower than the preceeding month as the board purchased more units during this period. It, apparently, shut down some units for routine overhaul and bought more power from DPC to make up for the shortfall.
DPC charged around Rs 117 crore for around 236 million units supplied in June which worked out to over Rs 5 per unit. As per the PPA, the capacity charges are fixed at 90 per cent average plant load factor. MSEB must pay around Rs 82 crore per month even if it does not draw any power from the plant.
However, the fuel cost is payable only for the units generated. Thus, if MSEB buys more units from DPC, the per unit tariff vis-a-vis capacity chargesreduces. This provides only limited comfort to the board as it has to pay higher fuel cost for more generation.
Sources say that DPC is entitled to get the entire capacity charges only if its plant indicates 90 per cent availability. In other words, if the company cannot generate this quantity and the board can buy more power, DPC must pay a penalty.
However, should the plant be able to generate more electricity but the board does not requires this quantum, it will have to pay for the full capacity. This adjustment, however, is done every four months which means that depending on plant availability, MSEB may get some money back from DPC as penalty payment. The knowledge on plant availability is also confidential in nature, say board officials.
MSEB is presently working out its dues to DPC as there is an apparent divergence in its accounting vis-a-vis DPC's. Previous bills sent by the power company had to be re-examined. The first bill of Rs 230 crore created a flutter as MSEB calculated a net outgo ofonly Rs 180 crore.
INSIGHT
Consumer is the loser
MSEB seems to have bitten off more than it can swallow. The company, by agreeing to purchase power from Dabhol Power Company (DPC) is now in a situation, where it has to shut down some of its plants under one pretext or the other so that it can purchase power from DPC at a higher plant load factor, which will reduce its per unit cost. It will have to be seen how MSEB will operate after routine annual shutdowns are over. Ironically, even the cost of power from the MSEB's own recently commissioned plant at Chandrapur (a land-locked plant) is lower than that of DPC. Being a promoter of DPC as well its only customer, MSEB seems to be unsure about its best interests. In any case, the main loser is the consumer. Why should the tariff be not disclosed is a mystery.
-- Shishir Asthana
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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