COMMUNITY

Regulatory panel for competitive bidding
Says it will keep power generation cost, tariff low
Umesh Dewan
Tribune News Service

Patiala, June 12
The debate over awarding new thermal power projects in Punjab to private players by signing an memorandum of understanding (MoU) with them is picking up.

The Punjab State Electricity Regulatory Commission (PSERC) has also been advocating that power projects in Punjab should either be set up under the state sector or should be awarded through competitive bidding.

A majority of power experts are of the opinion that the entry of private players would definitely lead to an increase in electricity tariff.

According to PSERC as well as the technocrats, the objective of providing affordable power to consumers is unlikely to be achieved by adopting the MoU route.

Notably, last year, the Punjab Government had notified the power generation policy for the state, which was aimed purely at encouraging private investment in the generation sector in the state.

According to the information available, the PSERC has sent a letter to Principal Secretary, Department of Irrigation and Power, Punjab, making several observations with respect to the new power generation policy.

The most important observation made by the PSERC is that the state-sponsored projects or projects awarded through competitive bidding would result in power being available to the state at relatively low rates. Apart from the PSERC, even the technocrats working with Punjab State Power Corporation Limited (PSPCL) are criticising the power generation policy.

Speaking to The Tribune, president of the PSEB Engineers Association HS Bedi said that the power generation policy is not in the interest of the people.

“The Central Electricity Regulatory Commission (CERC), in its advice to the Union government, had stated that the thermal power plants set up through the MoU route are costlier than the ones set up under the state sector,” he said.

Bedi added that most of the progressive states are adding new power generation plants, either under the state sector or through competitive bidding. “The MoU route will increase the electricity tariff,” he asserted.

However, despite so much criticism, the state government is not ready to review the policy. “Under the present circumstances, encouraging private investment is the preferred option to accelerate the addition of power-generation capacity,” reads a letter sent to the Power Department, Punjab, by the PSPCL authorities.