DERC tries to get its act together

As the Delhi Government tries to exit from expensive long term power purchase agreements, the Delhi Electricity Regulatory Commission (DERC) suddenly seems to have woken up to the cause. The power regulator has now issued notices to the distribution companies for not taking its approval for three such agreements which were renewed over three years ago.

In its notice to the three discoms – BSES Rajdhani (BRPL), BSES Yamuna (BYPL), and Tata Power (TPDDL), the power regulator has disallowed power purchase and related generation costs from three central sector plants — Anta, Auraiya and Dadri. The key reason cited in the notice was that the discoms did not take DERC’s approval before renewing the power purchase agreements (PPAs) and scheduling power from these plants. The worst part is that the agreement from these plants has no exit clause and the discoms will have to keep buying expensive power until the plant completes its life. “The three plants are already 15 years old and the cost of power is Rs. 4 per unit,” informed a discom official.

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