Tag Archives: AIPEF

Investigate poor performance of Sasan UMPP–AIPEF

Investigate poor performance of Sasan UMPP–AIPEF
Tuesday December 24 2013
New Delhi
All India Power Engineers Federation (AIPEF) has demanded that Central Electricity Authority should investigate the poor performance of Sasan units .
AIPEF in a press statement has alleged that Sasan unit no. 3 has achieved plant load factor of 43.8% only till today and has generated only 855 million units of energy in 131 days. The unit no. 3 has failed to achieve schedule of full load of 620.4 MW even on a single time block of 15 minutes. Even if it is assumed that this unit will now runs at 100 % capacity in last quarter of current financial year it would achieve PLF of 68 % as against the required 80%.
The shortfall in generation is causing a deficit of 17.9 Lac units per day to the procurer states of Madhya Pradesh Haryana and Punjab. The inability of Unit 3 to give full power of 620.4 MW with the present trend of 550 MW is a matter of serious concern and investigation.
The trial run of second unit of 660 MW Sasan UMPP has failed after the unit tripped on boiler leakage last Friday . The 72 hours Trial run commenced on December 18 could not be completed after boiler leakage. The unit which was synchronized about a month on December 12 and has failed to meet the target date of full load as given by Reliance to CEA.

AIPEF demands cancellation of license of Delhi Discoms

AIPEF demands cancellation of license of Delhi Discoms
Sunday December 22 2013
New Delhi
All India Power Engineers Federation (AIPEF) submitted a memorandum to Arvind Kejriwal demanding cancelation of license to Delhi Discoms.
AIPEF Secretary General Shailendra Dubey assured Kejriwal all out support in improving power position of Delhi & in reducing high tariff. He was accompanied by Mahesh Chand President and Satya Pal General Secretary of DVB Engineers Association.

Memorandum highlighted the gross irregularities of private Discoms in many aspects mainly on account of very high cost power purchase. Average power purchase cost shown in the tariff petitions is highly inflated. It is Rs. 4.99 per unit in Delhi while the same is Rs. 3.99 per unit in Uttar Pradesh. Excess amount claimed in the ARR therefore is app. Rs.2500 Crore in the current year. During the last 10 years may come out to the tune of more than 20000 Crore which is sufficient to supply free electricity for one year in total Delhi.
Satya Paul said that the fixed Charges levied should be removed be replaced with minimum guarantee charges as were being levied earlier. The levy of fixed charges claimed by Discoms and approved by Commission was justified with the pleas that since the companies had incurred huge expenditure on infrastructure.
Companies are selling surplus power at very high rates to other states , though they got at very low rates from excess central allocations l but profit is not passed on to the consumers as per ARR submitted by companies. Power purchase cost from Rithala plant as shown in the ARR for 2012-13 was 181 Crore and that for 2013-14 was 176 Crore, while it was not generating power since installation in 2009.
In May-2010, the then DERC Chairman recommended overall tariff reduction by 23% but instead of accepting the recommendation of DERC, tariff has been increased thrice. This it speaks that there are sufficient grounds for reducing domestic tariff by 50%.
AIPEF demanded that physical audit /verification of all the accounts of Discoms. The Discoms must be brought under the ambit of RTI. In terms of policy directions, Companies are not only claiming 16% guaranteed return on their expenditure incurred towards taking over the existing infrastructure from DVB and but also depreciation.

Adopt “Right to Energy for all” concept – EEFI

Adopt “Right to Energy for all” concept
Friday December 12 2013
New Delhi

The “Right to Energy for all” is a fundamental human right and Government should adopt it. The necessary changes must be introduced in the policies by way of strengthening the public sector institutions to achieve the goal of universal access to energy .
The National Convention on “Right to Energy “ was organized by Electricity Employees Federation of India (EEFI) at New Delhi .All India Power Engineers Federation (AIPEF) was represented by its Secretary General Shailendra Dubey, K Ashok Rao, R K Singh ,D C Dixit and Satya Pal. K O Habib & P N Chaudhary President & General Secretary of EEFI were amongst main speakers.
K O Habib said that “Right to Energy for all” is undoubtedly a call for the change in the neo liberal policies pursued by the Government in the whole energy arena. The recognition of right to energy for all as a fundamental human right to ensure a decent and modern living condition for the citizens of the country will change the paradigm of energy sector policies pursued by the Government. The recognition of right to energy need to create the necessary institutional and policy frameworks for ensuring accessibility, availability and affordability of power for all.
Shailender Dubey said that only public sector can ensure right to energy to all at affordable prices. Private sector cannot even dream of such a possibility whose only motto is to ensure hefty profits to the companies. Citing the example of Reliance ,Dubey said the company is ready to sell power from thermal plants in UP at more than Rs. 6 per unit and not willing to supply cheap power of 70 paise per unit from Sasan ultra mega power plant.
The convention demanded that Government of India must ensure energy for all at affordable cost and stop transfer of energy resources to the private hands. The convention also demanded that exploitation of energy workers, ensure strict enforcement of basic labour laws and stop disinvestment of public sector units.
The policy makers in India are playing a ruinous game and are transferring coal reserves to private hands to meet their unscrupulous goal in the name of Ultra Mega Power Projects and faster extraction. They are diverting Coal from the allocated blocks for their commercial gain in an unlawful way.
The object of Government of India and its advisers towards denial of access to energy for people of India becomes crystal clear from all the projects, schemes, mission declared by them. In the Energy chapter of approach paper for 12th plan Government has clearly declared the target of upward revision of energy prices to global level. Our people will earn in local standard and pay for energy in the global standard. The other examples are the Financial Restructuring Plan imposing compulsory annual tariff hike and imposition of open access etc

AIPEF opposes provision of supply licensee in Electricity Act 2003

AIPEF opposes provision of supply licensee in Electricity Act 2003
Friday December 6 2013
Chandigarh

All India Power Engineers Federation (AIPEF) has opposed the proposed amendment in Electricity Act 2003 regarding provision of supply licensee who will supply electricity in a particular area.
V K Gupta A spokes person of Federation said that since AIPEF is major stake holder on the issue it has requested the Union Power Minister of State that a meeting on the subject may be granted to Federation to discuss the issue threadbare before it is finalized and presented to Parliament for approval
He further said that as per proposal the supply licensee shall not require a license to undertake trading in electricity and can further appoint any number of franchisees to distribute electricity within his area of supply.
Padamjit Singh Chairman AIPEF in his letter has stated that supply licensees would sell power to high revenue identified consumers such as large supply consumers, industry, shopping malls etc. This will impact revenue of state Discoms and make them financially sick.
The system of a supplier arranging power from outside to be given to a large no. of scattered consumers embedded in the Discoms distribution system is not compatible with the prevailing scheduling system wherein every generator / supplier has to give the power supply to the Discoms as per day ahead schedule.
Moreover the energy accounting and losses not yet developed / streamlined by state Discoms as has been done in USA and Australia to handle the work of supply licensee using network of Discoms and Transco. In case supplier’s generator / source trips the unscheduled overdraws impact will come on state Discoms. How this unscheduled overdrawl will be loaded on to supplier.
Discoms are supposed to apply power cuts as per guidelines of regional load dispatch centers. In applying power cuts, the feeder being common, the consumers getting supplier licensee power will also get cut which could lead to disputes.
Consumer will have to deal with two agencies the network owner and the supplier. Ownership of metering equipment/meters could create problems -supplier may not agree to meters of Discoms and vice versa.
In case a LS consumer above 1 MW gets power from outside source as permissible now, through open access, he has to get the power as per a schedule. By contrast with a supplier giving power to large number of scattered consumers in the state, it would not be possible to give any kind of schedule on day ahead basis accurately.

CEA convenes meeting of procurer states on Sasan UMPP

CEA convenes meeting of procurer states on Sasan UMPP
Sunday November 10 2013
New Delhi
Central Electricity Authority (CEA) has convened a meeting of the procurer states and Sasan UMPP management on November 12 to discuss the matters relating to the poor performance of running unit.
Ever since Sasan Unit 3 started operating in scheduled mode from August 16 this year the unit has been repeatedly tripping/shut down on forced outage .It may be mentioned that Madhya Pradesh has maximum share37.5% from the project whereas Punjab and Haryana have 15% and 11.25% share from the project.
Sasan UMPP has a levelised tariff of 119.6 paise per unit whereas for the first two years power is to be supplied at 70 paise per unit. Due to repeated outages this unit could achieve a plant load factor (PLF) of only 28% during period from August 16 Aug to November 07.
All India Power Engineers Federation had been highlighting the various shortcomings of Sasan UMPP to various authorities on regular basis. AIPEF has mentioned that after synchronization of unit March 09 this unit was put on trial run in last week of March and a bogus commercial operation of unit was declared from March 31 this year. In the third performance test in August the unit could not run 72 continuous hours above 95% but still the commercial operation of unit was declared.
The poor performance, erratic and unpredictable schedules is a matter of concern particularly to the procurer states that have a share in this project. The second unit of sasan is due for commissioning in December.

630 MW Bokaro thermal unit shut

630 MW Bokaro thermal unit shut
Sunday October 27 2013
Ranchi
630 MW Bokaro B thermal Station of Damodar Valley Corporation (DVC) was ordered to shut down on October 24 as it was found polluting the Kolar River.
The Ash ponds of Bokaro thermal station were overflowing and the ash was being released to the Kolar River which is a subsidiary of Damodar River in gross violation of pollution norms. The Jharkhand State Pollution Control Board had raised serious objection which DVC was unable to address. The Chief Secretary Jharkhand has ordered the total shutdown of the station to save the Damodar River from further degradation.
All India Power Engineers Federation (AIPEF) in a letter to Union Power Minister has alleged that the shutdown of this station is a case of management failure on part of DVC. An enquiry into the events leading to the closure of Bokaro thermal unit and management failure needs to be ordered.
The closure of this station will cause immediate and direct financial loss to DVC as the DVC tariff is governed by CERC and capacity charges get reduced when station availability falls. Capacity charges are recovered through tariff and when station power is zero the revenue loss is immediate.
AIPEF has suggested that a task force or crisis management group may be set up to tackle the ash problem and to revive the plant.

AIPEF demands action against Reliance for its failures

AIPEF demands action against Reliance for its failures

Saturday September 14 2013

New Delhi

All India Power Engineers Federation has demanded that allocation of ultra mega power projects (UMPP) at Tilaiya and Krishanpatnam to Reliance should be withdrawn as company has failed to develop these projects despite a lapse of 4 to 5 years.

The executive committee of AIPEF in its meeting held today has alleged that Reliance is not developing these two UMPPs and has demanded tariff increase even before starting work on these projects. The construction work has not been taken up at Krishapatnam on the ground that the quoted tariff must be first increased to compensate for likely price increase of imported coal. The work on Tilaiya has not been taken up by reliance on the excuse of land acquisition problem.

Padamjit Singh Chairman AIPEF further elaborated that even in case of Sasan Reliance tried to declare the commissioning of first 660 MW Unit on 30 March 2013 even though the unit could operate at only 101 MW simply to gain one tariff year of low cost supply. This was however disallowed by CERC. The latest trial run conducted in August this year is still under consideration by CERC.

Even in case of transmission system the actual progress made by Reliance on Talcher II and North Kanakura is nil in last three years and Power grid has petitioned to CERC that transmission license of reliance be cancelled and work handed over to it.

AIPEF has demanded registering of FIR against Reliance Power for its proven fraud in the construction of cooling tower at Raghunathpur thermal project of DVC .it may be mentioned that Reliance had used lesser quantity of steel in a fraudulent manner in the construction of cooling tower of 600 MW unit 1
was held up since Oct 2010 and this unit would be delayed by over 3 years with a daily revenue loss of Rs 1.5 crore per day to DVC.

In another resolution AIPEF regretted that State power generating units were being shut down to enable private sector projects to run at full capacity and earn maximum profits at the cost of State Discoms. In Gujarat it was found that 35% of State capacity was shut down whole private plants of 87 % capacity were running.

Similarly at Haryana while power from Adani project was being liberally purchased, daily up to 8 thermal units of state plants at Panipat, Yamunanagar and Hisar were being shut down on low demand. In case of Punjab situation is slightly better as PSPCL is only backing down its thermal units at Ropar and Lehra Mohabatt.
AIPEF noted that the recent proposal of ESSAR for distribution license in Gurgaon would lead to high tariff of over Rs 8 per unit while ESSAR will be charging over Rs 5 per unit of power from its own
stations. AIPEF called upon HERC to reject the application also because there was no competitive bidding and resulting in high tariffs claimed.
AIPEF regretted that Government was trying to impose privatization through back door by putting a pre condition for privatization in the Financial Restructuring Plan introduced recently. While State Discoms
were in financial distress the financial relief should be given without pre condition of privatization of distribution system.

Reallocate power to northern states from central projects–AIPEF

Reallocate power to northern states from central projects–AIPEF
Tuesday August 6 2013
Chandigarh
All India Power Engineers Federation (AIPEF) while demanding the reallocation of power to northern states from central sector projects has alleged that undue benefit of Rs. 4463 crore has been given to private Discoms supplying power to Delhi.
AIPEF in a letter to Prime Minister has sought his intervention towards urgent requirement of reallocation of central sector power to northern states as most of these states are paying heavy charges and penalty towards unscheduled interchange ( UI) charges while private Delhi Discoms are minting money through UI by way of surrendering allocated power every month for the last six years.
The allocation of central power to Northern states is not fair and UI cannot become a mechanism for earning money every day, every month and every year for private Discoms of Delhi.
AIPEF has urged the Chief Ministers of Haryana and Punjab to take up the matter with Ministry of Power immediately for reallocation of power to northern states on urgent basis so that undue favor being bestowed on Delhi DISCOMS is withdrawn and justice is done to all northern States.

It is worthwhile to mention that Northern states are having shortage of power due to which most of the states are forced to overdraw from Northern grid to meet their power requirement and depending upon the grid frequency they have to pay heavy charges for UI. On the contrary private Discoms of Delhi are surrendering central allocated power every month and they mint money on this account while they did not spend a single paisa for generating this central allocated power.
V K Gupta a spokesperson of Federation said that Haryana and Punjab have paid heavy UI charges during the same period due to less allocation of power from central sector as compared to their requirements. During last seven years of 2006-07 to 2012-13, Haryana has paid Rs.5230 crore while Punjab has paid Rs.2511 crore on account of UI charges , while Delhi Discoms (Reliance & Tata) have earned Rs.4463 crore during this period by surrendering central allocated power without spending a single paisa.
It may be mentioned that Uttar Pradesh paid maximum of Rs. 7541 crore on power over drawl .Rajasthan and Uttrakhand paid Rs.3809 crore and Uttarakhand Rs.1824 crore respectively.

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