PSPCL faces losses as rain trips demand
Vishal Rambani
PATIALA:

EXTRA TROUBLE State power utility may incur losses up to R2,000 crore this year as it is forced to surrender surplus power; industrial units buy from other sources thanks to open access policy ( ) Due to the rains, the demand has crashed and we are incurring losses due to surplus power.

K D C H AU D H RY PSPCL CMD
It's a peculiar problem of plenty for Punjab's state power utility. The Punjab State Power Corporation Limited (PSPCL), which often falls short of power and incurs losses by purchasing power at higher rates to meet the high summer demand, has excess power this time -forcing it to give up power.

Thanks to the recent rain across the region, which has decreased the power demand, the PSPCL has had to surrender 350 MW power and shut down some of its thermal power units on five occasions.

Surrendering each unit costs the PSPCL 80 paisa to a rupee.

“It's a different type of situation which the PSPCL is facing. Anticipating huge demand this summer, the PSPCL had made several power purchase tie-ups,“ said PSPCL chairman and managing director KD Chaudhry. “However, due to rains, the demand crashed and we are incurring losses due to surplus power. This year, instead of paying money to draw power, the PSPCL is accruing loss by surrendering power.“

Chaudhry said the open access policy was responsible for the losses, pointing fingers at industrial houses. “Whenever industrial houses get cheaper power in the grid, they buy from other resources, leaving the PSPCL in loss as power can't be stored.“

The non-sale of power to industrial units could push the state power utility's loss to Rs 2,000 crore this year, he warned.

“Big industrial units have drawn 1.5 lakh units outside,“ said Chaudhry.

The PSPCL charges a minimum of Rs 4.95 per unit from industrial units. A 700 MW dip in demand on Saturday forced the power utility to shut down its generation units. Two units in Ropar, and one each in Lehra Mohabbat plant and Bathinda plant were shut on Saturday morning.

“Production of each unit of electricity at a thermal plant costs Rs 1.80 to the PSPCL, whereas the power during rainy days is available at a range from 80 paisa to Rs 1.20,“ said GS Chabra, director (power generation), PSPCL. “Thus, we shut down thermal units time to time.“

Last year, the PSPCL had incurred a loss of Rs 1,250 crore because of the open access policy. “We have already approached the regulator demanding levy of charges over drawing power through open access“, Chabra said.