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Power corp in Catch-22 situation
Chander Parkash
Tribune News Service

Bathinda, June 10
Punjab State Power Corporation Limited is in a piquant situation. Forced to use power purchased at high rates from outside the state, it has shut its thermal plant units producing power at lesser costs.

The corporation closed seven units of its three thermal plants yesterday on account of reduced demand by consumers of all the categories.

Official sources said if the corporation wanted to use cheaper power from its own sources by surrendering the power purchased from outer sources, it would have to pay a penalty of 70 paisa - 80 paisa per unit to the companies with which it had made the power purchase agreement.

The sources said the average production cost of each unit of electricity at the three thermal plants was half the price at which the corporation had purchased power from the Power Trading Corporation and the National Thermal Power Corporation.

Arun Verma, Director (Distribution), PSPCL, said as per the agreement with these companies, the corporation could surrender 10 per cent of the total power purchased without penalty after a two-day notice.

He said the power demand had crashed following rains in the state. The corporation had, hence, decided to shut its thermal units and save the fuel cost.

He said the corporation had purchased 1,000 MW of power for June from outer sources. However, it had already surrendered about 100 MW with rains expected in the state in less than a fortnight.

He said the corporation had decided to purchase power worth Rs 1,200 crore in the current year to ensure uninterrupted supply to the consumers during the summer season and beyond.

It had purchased power to the tune of Rs 1,800 crore last year.

However, after heavy rains in the region, it had surrendered power worth Rs 400 crore, paying a Rs 35-crore penalty.

“In case the power demand goes down in the state, to surrender power by paying the penalty to outer companies is not a bad option,” he remarked.

7 units shut

If the corporation is to use cheaper power from its own sources by surrendering the power purchased from outer sources, it will have to pay a penalty of 70 paisa -80 paisa per unit to the companies with which it has reached a purchase agreement

Chander Parkash
Tribune News Service

Bathinda, June 10
Punjab State Power Corporation Limited is in a piquant situation. Forced to use power purchased at high rates from outside the state, it has shut its thermal plant units producing power at lesser costs.

The corporation closed seven units of its three thermal plants yesterday on account of reduced demand by consumers of all the categories.

Official sources said if the corporation wanted to use cheaper power from its own sources by surrendering the power purchased from outer sources, it would have to pay a penalty of 70 paisa - 80 paisa per unit to the companies with which it had made the power purchase agreement.

The sources said the average production cost of each unit of electricity at the three thermal plants was half the price at which the corporation had purchased power from the Power Trading Corporation and the National Thermal Power Corporation.

Arun Verma, Director (Distribution), PSPCL, said as per the agreement with these companies, the corporation could surrender 10 per cent of the total power purchased without penalty after a two-day notice.

He said the power demand had crashed following rains in the state. The corporation had, hence, decided to shut its thermal units and save the fuel cost.

He said the corporation had purchased 1,000 MW of power for June from outer sources. However, it had already surrendered about 100 MW with rains expected in the state in less than a fortnight.

He said the corporation had decided to purchase power worth Rs 1,200 crore in the current year to ensure uninterrupted supply to the consumers during the summer season and beyond.

It had purchased power to the tune of Rs 1,800 crore last year.

However, after heavy rains in the region, it had surrendered power worth Rs 400 crore, paying a Rs 35-crore penalty.

“In case the power demand goes down in the state, to surrender power by paying the penalty to outer companies is not a bad option,” he remarked.

7 units shut

If the corporation is to use cheaper power from its own sources by surrendering the power purchased from outer sources, it will have to pay a penalty of 70 paisa -80 paisa per unit to the companies with which it has reached a purchase agreement