No breather for consumers in power supply chokehold

The congestion in the power network of the country, owing to demand-supply mismanagement, has cost both consumers and utilities dear. In past three years, power consumers across the country paid Rs 2,996 crore as additional cost to source power due to lack of network. Also, congestion has accumulated in five regional grids, to around 80 per cent of the supply time, hurting electricity availability and revenues.

A calculation done by the Indian Energy Exchange (IEX), one of the largest power trading platforms, reveals the state power distribution companies (discoms) could not source cheaper available power as there was no robust transmission network to evacuate it, thereby loading the consumer with costlier alternatives.

“Transmission constraints are primarily concentrated for power flow around the west-east-north belt. As a result of congestion, there is restricted power flow to the southern and northern regions,” said the note. Also, the price is distorted across several regions. While power price in the north and west region was in the band of  Rs 2.29-2.31 per unit during June 2015, the price rocketed to Rs 5.12 in the south region.

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