SPDCL lost Rs. 5,820 Cr to buy power at higher rates: CAG
The Comptroller and Auditor General of India (CAG), in its report for the year ended March 2017 which was placed before the Telangana Legislative Assembly on Thursday, revealed that the Southern Power Distribution Company of Telangana (SPDCL) purchased short term power in excess of State Electricity Regulatory Commission limits and at rates higher than the maximum ceiling limits set by SERC. This resulted in an extra cost of 5,820.90 crore during 2012-17.
The CAG report said that the State Electricity Regulatory Commission stated (March 2015) that during the truing-up of the power purchase cost, agricultural sale quantum would be limited to actual consumption or the Tariff Order quantity, whichever is less. This was to avoid passing of excess power purchase costs due to increased agricultural sales to other consumers. However, the power supply to agriculture exceeded the approved limits during 2012-17. This resulted in additional burden of Rs. 1744.56 crore on the Company. “The Company reported continuous reduction in energy losses during the period 2012-17. However, the losses were higher than the norm fixed by the SRC in all the years. AS a result, the company was burdened with additional loss of Rs. 1306.76 crore during the period 2012-17,” the report said.