TNERC stops high cost power purchase

Chennai: With the widespread public outcry against the high cost purchase of power by Tangedco, the Tamil Nadu Electricity Regulatory Commission (TNERC) has disallowed the utility from purchasing power from four high-cost, independent power producers (IPP) in its latest tariff order.The public and political parties opposed the purchase of power at Rs12 per unit when the Central generating stations were supplying power at Rs3 per unit. Out of the seven IPPs, the commission has disallowed purchase of power from the four high-cost IPPs – GMR, Samalpatti, Madurai Power Corp and Pillaiperumalnallur.

The commission has not allowed any variable and capacity charges for GMR for its expiry of power purchase agreement in the last fiscal year itself while other three plants were allowed the same. Of the total power requirement of 91,642 million units, Tangedco purchases 2,950 MU from high-cost IPPs.However, TNERC, in its order, has also allowed Tangedco to purchase power from unapproved sources after taking its approval.

Besides,the commission suggested that Tangedco project power availability for shorter time intervals, such as monthly, to arrive at short-term power management leading to overall optimisation of power purchase cost. The commission directed Tangedco to provide the monthly energy demand and availability and its plan of scheduling power in accordance to the merit order despatch on quarterly-basis.

A senior Tangedco official said if the commission continues to disallow power purchase from the high-cost IPPs, it would only make Tangedco a sick unit.“We are purchasing power from the IPPs to supply it to consumers. If not, we will be forced to impose power cuts,” the official pointed out, wondering what was the point in the merit order despatch in the tariff order when the power demand exceeds supply.

Stating that there was no need to purchase power from the high-cost IPPs, Mr S. Gandhi, president of Power Engineers Society of Tamil Nadu, said the shortfall due to non-purchase of power from the IPPs can be met through its own thermal power plants.

“The combined capacity of all the four IPPs will be in the range of 732 MW. As per Tangedco’s claim, the plants are run at 50 per cent plant load factor, which means it will supply about 400 MW. The 400 MW shortfall can be handled easily by overloading state thermal power stations by 10 per cent and running the 600 MW Mettur stage-III plant to its full capacity,” he said.