Punjab Newsline
Ruling parties in Northern states hell bent to buy power for cut free supply
VINOD KUMAR GUPTA
Saturday, 11 April 2009
CHANDIGARH: The ruling parties in northern states going to poll on May 7 and 13 where temperature is expected to sore high by the time polling will be done, they are leaving no stone unturned to keep the voters cool when election fever would also be at its peak.

The political bosses have asked the power utilities to arrange power during election times at any cost to give power cut feree environment atleast during this summer. . So heavy is the tussle between the power starved states of the northern grid to book power from power-rich states, that price is no longer an issue and states are ready to cough up rates as high as Rs 8 to Rs. 10 and even more for every unit of power purchased. The demand for power would increase in this part of the country due to paddy sowing season starting by mid May.

In case of Punjab , PSEB has signed a power-purchase agreement for the purchase of 100 MW from the Baghlihar hydro power station in Jammu and Kashmir, besides signing three other such agreements, which will bring in additional 591 MW to the PSEB kitty during election period.

Earlier, the PSEB signed three agreements with Tata Power Trading Company, the NTPC and the THDC for the purchase of 591 MW.
Haryana went for power purchase arrangements by inviting tenders for short term power purchase during election time. Officially it is a routine exercise and has nothing to do with elections.

Uttar Pardesh has made arrangements to buy additional power for the month of April only, at an estimated cost of over Rs 260 crore, while plans have also been finalized to buy power for May and June. UP Power Corporation has struck an agreement to buy 250 mw of power from the Himachal Pradesh government for the first fortnight of April at the rate of 7.50 per unit and 400 mw for the next fortnight, also at Rs 7.50 per unit.

Elections are going to prove to be a lucrative proposition for captive power unit owners who are all set to sell power through power exchanges .. The State Electricity Boards are turning to the “power at any cost” mantra to minimise load-shedding during the polling months. This would mean a ready market for those wanting to sell surplus power to the grid. Lucrative tariffs during peak hours could be an added attraction.

ources said that power trading firms could also gear up for a spurt in business over the next couple of months as states desperately seek electricity. Deals on the two functional power exchanges – IEX and PXIL – are also likely to see an increase.

It is said that for grid operators, however, the prospect of most States looking to overdraw to minimise load-shedding could prove to be a nightmare. In the wake of threats to grid stability, the Central Electricity Regulatory Commission has stepped up vigil and has started monitoring overdraws at frequencies below 49.2 Hz .

“The prices on the firm and day-ahead power from traders and day-ahead power from exchanges are on the rise due to the summer setting in and increased agriculture load. The threat of a tripping of the grid due to over drawl of electricity by constituents is very real,” a senior PSEB official said.