Power-starved Telangana has come as a saviour for electricity consumers in Delhi as the southern state has told public-sector NTPC that it was willing to buy the PSU's capacity rendered redundant by the city state.
Power-starved Telangana has come as a saviour for electricity consumers in Delhi as the southern state has told public-sector NTPC that it was willing to buy the PSU’s capacity rendered redundant by the city state. This would lead to elimination of fixed cost payable by Delhi residents, translating into a savings of 70-80 paise per unit for them .
Over the course of the past year, the three privately-run power distribution companies of Delhi stopped buying power from NTPC-run thermal power plants in Dadri and Jhajjar on account of high cost and availability of cheaper power. However, under the terms of power purchase agreements (PPAs), the discoms have continued to foot the fixed cost associated with these plants and recover it from the consumers.
Last year in November, the Telangana government wrote to NTPC showing its willingness to buy the surrendered capacity amounting to 1,993 megawatts (MW), with 926 MW from Dadri and 1,067 MW from Jhajjar. Telangana wants to procure power on a short-term basis for a year, starting April this year.
In response, the Delhi government wrote to the Union power secretary on Tuesday asking it to direct National Load Despatch Centre (NLDC) and Power Grid Corp to facilitate re-allocation of power.
“The instant proposal of Telangana State Power Coordination Committee is in the interest of all parties concerned, as on one hand the power-deficit state of Telangana will get requisite power, and on the other hand the consumers of Delhi will get relief from the burden of fixed cost of surplus power,” Sukesh Jain, Delhi power secretary, said in a letter to the Union power secretary.
One of the Delhi discoms, Tata Power Delhi Distribution (TPDDL), told FE that the move will help the company save nearly R735 crore in a year translating into a 70-80 paise per unit relief to its consumers. It is estimated that the consumers of the other two discoms stand to reap price benefit in the same range.