BSES Discoms ask for 25 perc hike in tariff for power being supplied in Delhi

 

BSES Discoms of Delhi, BSES Rajdhani Power Ltd (BRPL) & BSES Yamuna Power Ltd (BYPL), has submitted to the Supreme Court that they were in an unviable financial position and demanded for a 20-25% hike in power tariff to bridge their revenue gap.

 

 

According to BYPL & BRPL,

• major portion of the revenue was being spent in purchasing electricity from the government-owned power generating companies
• the firms were denied "cost reflective tariff" from the regulator (DERC).
• BSES Rajdhani Pvt Ltd started with opening overdues of Rs 2,847 crore in January 2014 and by January, 2015, the closing overdues went up to Rs 3,965 crore.
• Similarly, BSES Yamuna Power Pvt Ltd (BYPL) started with opening overdues of Rs 2,394 crore in January 2014 and by January 2015, the closing overdues was Rs 3,590 crore.

BSES Yamuna Power Pvt Ltd (BYPL) and BSES Rajdhani Pvt Ltd (BRPL), which owe money to various power generating PSUs including NTPC and NHPC, had moved the court seeking various reliefs including a direction that the power supply to them should not be cut by the PSUs for ensuring uninterrupted supply in Delhi.

However, Delhi Electricity Regulatory Commission (DERC), opposed the plea of the private discoms saying they have "buffered up" the losses.

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Delhi discoms offer to surrender surplus power to state govt...

 

Facing allegations of selling a surplus 1,000 mw to group companies at below-market rates to supress profits, BSES discoms have urged the Delhi government to take over management of unused power so that the controversy can come to an end.

Despite the Delhi High court quashing the regulatory order that said discoms could make profit of Rs 3,577 crore a year by selling surplus power alone, consumer groups continue to cite the order to bolster their case that discoms are manipulating electricity trading deals. The Delhi Electricity Regulatory Commission had arrived at the profit figure by assuming electricity price of Rs 5.75 a unit in 2007.

On the other hand, discoms maintain that power is surplus only during non-peak hours when prevailing market rates are low. So, prices are usually lower than rates at which power is purchased from central generating stations under long-term power purchase agreements ( PPAs).

In a letter to Delhi power secretary Puneet Goel, discoms have said they sell surplus electricity through transparent mechanisms like power exchanges, trading and banking arrangements and unscheduled interchange (UI), where all transactions are accounted by the state load despatch centre in compliance with the guidelines laid down by the regulator. Anyway, the discoms have further said that they cannot be held responsible for terms of the PPAs that were signed by the erstwhile Delhi Vidyut Board prior to its privatisation in 2002, and assigned to them in 2007.

“In the interest of transparency and to avoid baseless allegations and unnecessary controversy, the BSES discoms request the Delhi government to take over the entire responsibility for ensuring adequate power to meet the peak demand and sell off-peak power in the most optimal manner,” said the letter sent by Gopal K Saxena, CEO, BSES Rajdhani Power. BSES Rajdhani Power and BSES Yamuna Power together cater to two-thirds of electricity consumers in the national capital.

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Delhi Government cannot afford power subsidy: Ex-CERC chief...

 

It is increasingly becoming clear that the Arvind Kejriwal-led Aam Aadmi Party (AAP) put little thought in announcing its freebies, especially in the power sector.
 
In a conference call by foreign broker Jefferies, former Chairperson of Central Electricity Regulatory Commission of India and the longest serving electricity regulator in the country, Dr Pramod Deo, said Delhi cannot afford to meet the subsidy burden announced by AAP.
 
The way the Kejriwal government has managed it is by giving only Tata Power the subsidy amount and adjusting the amount due from Reliance Infra. This is contestable as the law is clear that any subsidy amount announced by a political party has to be paid upfront. The section 65 of the Electricity Act 2003 is clear on this part that if the state government announces subsidy, then they have to pay the amount upfront, says Deo.
 
If the state government wants to give benefit to any consumer, they are free to do that but they have to pay the difference to the distribution company.
 
The idea being that whatever the political decisions are taken they should not affect the performance/commercial operations of distribution companies, Deo pointed out in the conference call.
 
The former CERC chief made it very clear that if the state government does not give subsidy, tariff cannot be reduced.
 
Kejriwal had said that Tata Power will be given a Rs 61 crore subsidy while the amount due to Reliance will adjusted against payment dues to government owned generating and transmission companies.
 
The Delhi government will have to pay much more than what was announced by the chief minister, Deo said, if Reliance contests the mode of subsidy payment. 
 
On the issue of CAG audit, Deo said that all items in the P&L related to sales, operating and maintenance cost are approved by the regulator and are based on normative tariff, so these cannot be inflated.
 
CAG audit can be mainly related to the capital expenditure incurred by these companies over the years to improve the service and availability of power in the state. Distribution companies have been accused to gold plating their capital expenditure.
 
In the case of distribution companies, capital expenditure is important as the amount is transferred to the equity capital of the company based on which they get a return of 12%. Thus gold plating capital expenditure would mean higher profits for the companies.

Source: Business Standard

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DERC plans new regulations for tariff fixation...

 

Delhi Electricity Regulatory Commission (DERC) has proposed to adopt new power regulations from next fiscal to help fix tariff. The new regulations will replace the current average revenue requirement (ARR) petitions that discoms file every year.

DERC chairperson P D Sudhakar said, "Discoms have already prepared their ARR for tariff submissions for 2014-15 so we plan to adopt the new regulations the year after," he said. The new accounting format has been prepared by the forum of regulators and is being slowly adopted by electricity regulators across the nation. "The present ARR is not submitted in this new format. The new regulations will help facilitate further processing easily and be useful. Discoms will have to submit information in a format that will enable us to assess data conveniently. The forum of regulators had come out with model regulations and we have made certain changes in the regulations we wish to adopt," Sudhakar added.

DERC is keen to have the new regulations in place at the earliest. "A draft of the regulations has been put up on the Commission's website for information and comments and public feedback is invited till January 31," said an official. Till date, only Tata Power has submitted their ARR petitions to DERC for tariff determination. Petitions from two BSES discoms, Rajdhani and Yamuna, are still awaited.

Meanwhile, discoms are preparing for the CAG audit next week as ordered by Delhi government. Sources said CAG office is likely to officially notify the power companies early next week for the audit.

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Delhi Government orders CAG audit of private power companies...

 

Rejecting the contention of private power distributors, the Delhi government on Wednesday ordered a CAG audit of their finances, fulfilling yet another election promise of the Aam Aadmi Party.

"We have ordered an audit of the private power distribution companies. The CAG has said it will do the audit," chief minister Arvind Kejriwal told reporters after a meeting of the Cabinet which took the decision on audit.

He said the Lt Governor's order on the audit of the companies will go to the CAG on Thursday. "From tomorrow (Thursday), the audit will begin," he said.

The Delhi government had given time to the three companies -- BSES Yamuna Power Ltd, BSES Rajdhani Power Ltd and Tata Power Delhi Distribution Ltd -- till this morning (Tuesday) to give their views on why there should not be a CAG audit of their companies.

Asked what the companies have told government, Kejriwal said they had given numerous reasons but not one reason why the audit should not be done.

"Nobody has given any reason why there should not be an audit," he said adding the auditing will cover from the days the power distribution was privatised.

He also rejected the view that the matter was subjudiced and the decision cannot be taken. "The matter has been in the High Court and proceedings are on. No stay has been granted. Even now the proceedings can go on."

On complaints about the defective quality of power meters, the chief minister said the government would approach IIT Delhi and Delhi College of Engineering for suggestion to improve the quality of meters.

Kejriwal said there had been constant demand for auditing of the private power distribution companies and the previous government was "misleading" the people saying the matter was in the court.

"What the previous government could not do in four years, we have done in four days," he said.

Asked about BJP leader Arun Jaitley's criticism that his government was taking populist measures with short term objective, Kejriwal said people can argue about the quantgity of water to be supplied free but any civilised government has a duty to provide it.

When told that the Congress government in Haryana has slashed power tariffs and a Congress MP in Maharastra was pleading for reducing tariff on the lines of the AAP government, he said "I am very happy".

"We will teach them politics," he added with a chuckle.

Asked about BJP's criticism that he was keeping mum on the 'corruption' of the previous Congress government after coming to power, he shot back "let Harsh Vardhan send details.

We will immediately take action."

On Tuesday, Kejriwal had announced 50 per cent subsidy to thsoe consumers whose monthly consumption does not cross 400 units.

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Delhi Government slashed electricity tariff by 50%...

 

Aam Aadmi Party-led Delhi government on Tuesday cleared a 50% cut in electricity tariffs, delivering on yet another poll promise a day after it announced metered consumers will get 20 kilolitres water every month free of cost.
 
The government was also on course to ordering an audit by the national auditor into the finances of three power distribution companies, another key poll promise.
 
The decision to subsidise power tariff, which will involve a cash outgo of Rs. 61 crore in the next three months, was announced by chief minister Arvind Kejriwal after a meeting of the cabinet.

The subsidy would be applicable to those households that consumed up to 400 units. And those who use electricity above this limit will have to pay full amount for the entire consumption. The decision is expected to benefit 28 lakh of 34 lakh households.
 
Questioned about the subsidy that will be available only for three months, Kejriwal said further decision on this would be available only after the audit report.
 
He said the cabinet would meet tomorrow after the three companies submit to the government their views on the proposal for audit of their finances.
 
"Only after studying their replies we will take a decision whether to audit or not," he said.
 
To a question whether the government has the right to decide on slashing power tariff when a regulator was there, the CM shot back the government can provide subsidy.
Earlier, defying doctor's advice, an unwell Kejriwal met comptroller and auditor general Shashi Kant Sharma to discuss the issue before going into a cabinet meeting.

After the meeting with the CAG, Kejriwal said the national auditor is ready for the job. He said the cabinet will tomorrow go through the representations to be made by the power companies and take a decision.
 
"Then there will be an order by the Lt Governor," he said, denying that a decision has been taken and only formalities are being completed.
He said the CAG told him it all depends on how much work is involved and how fast the companies would provide documents.
 
The BJP and AAP have been demanding CAG audit of finances of the discoms, alleging huge irregularities by them.
 
Riding the anti-corruption wave, the AAP made a phenomenal electoral debut by reducing Congress to number three after having tasted power for the past 15 years.
 
However, all the three companies— BSES Yamuna Power Ltd, BSES Rajdhani Power Ltd and Tata Power Delhi Distribution Ltd—have been opposing it.

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Government has no authority to reduce power tariffs: DERC

 

Delhi's electricity regulator has said the government cannot interfere in fixing tariff though it can subsidise consumers, highlighting the potential difficulties facing Arvind Kejriwal, the new Delhi CM, whose party has promised to halve electricity prices in the Capital.

"The government cannot interfere in tariff fixation. It is a regulatory issue," PD Sudhakar, chairman, Delhi Electricity Regulatory Commission, told ET.

"We fix the tariff as per law, taking into account all economic considerations. The government cannot interfere in the process. But if it wants to support people, it can offer a subsidy to reduce power tariff," he said.

"How do they (Aam Aadmi Party) propose to reduce the tariff? We fix the tariff after due diligence and it is difficult to reduce tariff beyond a point as 70% of Delhi's power comes from outside and we have no control over the cost of power," the state power watchdog said.

"But by law, the state government can offer subsidy. To what extent they would want to subsidise is up to them," Sudhakar said.

The meteoric rise of AAP, which eventually led to Kejriwal becoming the chief minister of Delhi, was fuelled, at least in part, by promises which many economists would term populist.

These include providing 700 litres of free water, the promise to cut electricity rates in the city and conducting audit of power distribution companies (discoms). While many Delhi residents were enthused by the prospects of cheaper power, the power distribution companies have said it will be "nearly impossible" to lower the rates, given that their accumulated losses amount to Rs 11,000 crore.

Discoms argue that in the past 10 years, cost of power has increased 300%, mainly because of higher coal prices and a rise in the financing charges due to higher interest rates, while the rate at which it is sold to retail consumers has increased by only 70% during the period.

Delhi has three power discoms, two controlled by Reliance Infrastructure and one by Tata Power. The state government owns a 49% stake in each discom.

"If they (AAP) feel the accounts are fraudulent and have been under-reported by 50%, it's a matter of their perception. Now they have formed the government, which is a part owner of the discoms. We have done our job carefully, but if they want they can get auditors and fix any issue they may come across," Sudhakar said. The total annual revenue of the three discoms in Delhi is around Rs 15,000 crore. If the government offers to lower tariff by 50%, it may result in an additional annual burden of Rs 7,500 crore on the state, experts tracking the sector said.

Sudhakar also dismissed arguments that the state's discoms were making profits on surplus power available to them. "Delhi has 20-30% surplus power during nonpeak hours, which is fed back into the grid at rates fixed by the Central Electricity Regulatory Commission. Due to change in norms, the returns the state gets are low and we are actually making losses on it." Industry sources said during the 2010 Commonwealth Games, the Delhi government had asked discoms to tie up additional power to meet the spike in demand.

Post the event, the city has had surplus power which it can feed back into the grid at rates fixed by CERC or sell on the power exchanges or through bilateral pacts. However, most state power distribution companies choose load shedding over buying power as they are sitting on huge losses. Consequently, there are not too many takers for the surplus power from Delhi and the city state ends up selling it back to the national transmission grid.

Long before his election campaign, Kejriwal had alleged the Sheila Dikshit-helmed government was in cahoots with the discoms, which resulted in wrongful gains to the latter. He had cited a 2010 estimate by Brijnder Singh, the chairman of DERC at the time. Singh had said that discoms were making large profits and had recommended reducing rates by 23%.

According to Singh, discoms would have made profits of Rs 3,577 crore from sale of surplus energy, but his recommendation was rejected and was not incorporated in the final tariff order.

This issue was contested by social worker and former MLA Nand Kishore Garg through a public interest litigation in the Delhi High Court, to which AAP leader Prashant Bhushan was also a party. But the court ruled that Singh's recommendation was not the official tariff order.

In its judgement in May 2011, the Delhi High Court said, "The notings on the files by the commission do not constitute an 'order' under the 2003 Act...The commission shall proceed afresh by following the due procedure and do the needful and not afford any kind of opportunity for criticism and determine the tariff."

Sudhakar said the court order had settled the issue: "This argument (citing Singh's order) keeps resurfacing, but the Delhi High Court has already dismissed this since there was no official DERC order on it. The so-called profit that was mentioned was based on certain assumption that did not come true."

Officials at the regulator said during Singh's tenure, he had expected that Delhi would get an additional 5,000 mw capacity in 2010-11 which could be sold at a premium to make profits. However, these projects were either delayed or shelved. The state, thus, never got this capacity and therefore there were no profits.

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DERC turns down discoms power tariff-hike plan in Delhi...

 

The Delhi power regulator has turned down a request by the distribution companies to hike power tariffs in the Capital, a day before the Aam Aadmi Party (AAP) chief Arvind Kejriwal takes oath as chief minister. This is probably the first time that a claim by the distribution companies has been turned down.

Distribution companies BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution Limited had sought the hike as power purchase cost adjustment (PPAC) which would have been effective for the quarter of January to March 2014.

This increase was sought to cover the increased expenses incurred by the companies from July 1 to September 30, 2013, and is done every quarter. While BYPL had asked for a steep seven per cent hike, BRPL had sought a 3.5 per cent hike, TPDDL had asked for two per cent hike.

“There is a formula to work out PPAC, which was approved in the tariff order announced in August. After studying their claims and verifying them, we found that there was no need for an increase as they have not incurred additional cost over what has been allowed to them,” said PD Sudhakar, chairman of the Delhi Electricity Regulatory Board (DERC).

The power tariffs were last revised for the quarter of May to July when the power regulator had approved a 3 per cent hike for TPDDL, and a 4.5 per cent hike for areas under BRPL and BYPL.

AAP’s election manifesto says that the party will slash power tariff in the Capital by 50%. The party, set to form the government in Delhi, has also promised to conduct audits of the distribution companies.

A possible fallout of the political changes in Delhi was witnessed recently when TPDDL, which supplies electricity to north Delhi, submitted its annual revenue requirement (ARR) to DERC and didn’t seek a hike. “They have left it on us to decide. They submitted their papers giving out financial details and have admitted that there is a shortfall,” said a senior official. BRPL and BYPL are yet to submit the ARR.

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DERC ponders over discoms’ demand for new rates...

 

Aam Aadmi Party may have promised to slash power tariff in the city by 50% but Delhi Electricity Regulatory Commission (DERC) is considering the discoms' demand for new rates towards power purchase adjustment costs (PPAC) from January 1.

"We are studying the claims made by the discoms and verifying them. Depending on whether the discoms have incurred additional costs over what has been allowed to them, PPAC may or may not be given to them. We are hoping to pass an order by the end of the month," said a senior DERC official.

Private discoms BSES Rajdhani, BSES Yamuna and Tata Power Delhi have sought the hike as PPAC which will be charged from January to March 2014 and will cover the increased expenses incurred by the companies from July 1 to September 30, 2013.

Appellate Tribunal of Electricity has allowed PPAC to the discoms for the expenditure incurred in power purchase and increased generation costs over and above what has been allowed to them in the tariff.

BSES Rajdhani has sought a 3% hike, Tata Power Delhi a 2% hike and BSES Yamuna a 7% hike that DERC has already scaled down to 3%.

After the tribunal had asked all state regulatory commissions to implement the power purchase adjustment formula rather than just allowing the variable (fuel) cost, DERC introduced the provision of fuel adjustment from the tariff of 2012-13 and then changed it to overall power purchase during the latest tariff hike in July 2013.

In the 2013-14 tariff order issued in July, PPAC had been merged with the tariff for the last quarter. This is the first time that the discoms have sought the costs separately. "PPAC is given only when discoms incur additional costs not covered in tariff," said chairperson P D Sudhakar. A CERC proposal, if implemented, may reduce NTPC generation costs and discoms may not require PPAC in the next quarter, sources said. "We will know only when the proposal is finalized," said Sudhakar.

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More Indian airports are planning to tap solar energy...

 

Airports in India are increasingly looking to solar power. After Delhi International Airport Ltd (DIAL) announcing last week that it had set up a 2.14 MW solar power plant, Cochin International Airport Ltd (CIAL) has said it too has set up a 1 MW plant.

Though the plant at CIAL is up and running, it is yet to be formally inaugurated. And airports of Bangalore and Hyderabad are also keen on tapping solar energy, with Hyderabad closer to a decision for a 5 MW system.

Unlike Delhi airport’s solar plant, the 1 MW facility at Cochin is spread over three locations within the airport, part of it on rooftops.

None of them is on the ‘airside,’ or on the land abutting the runway, which is where most airports abroad have their solar power systems. A 320 kW plant has been put up on the vast roof of the MRO hangar of CIAL.

Another 550 kW is ground-mounted, and the rest is installed on the roof of the training centre building, the CIAL official said.

However, the official of CIAL said the airport has plans to expand solar capacity to 10 MW, and the future projects will come up on the airside.

Incidentally, CIAL had first put up a 100 kW system, which was built for them by Kolkata-based Vikram Solar. The 1 MW plant was put up by Emvee Photovoltaic of Bangalore.

Airports and hotels typically have large area of land and are a very attractive market-base for solar, says K.M. Santosh, Managing Director, Enerparc Energy Pvt Ltd, the Indian subsidiary of the German company of the same name, a global pioneer in putting up solar plants at airports. The solar plant in the Delhi airport was put up by Enerparc.

The solar plant in the Delhi airport was put up by Enerparc. Where there is possibility of the airport availing itself of depreciation benefits, solar is particularly attractive, he says.

Today, a 1 MW solar power plant costs between Rs 6 and 7 crore and typically generates 1.5 million units of electricity a year.

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GMR Operated Delhi Airport became Asia's First Airport to have a Megawatt Class Solar Project...

 

The GMR Group-operated Delhi International Airport has become the first in Asia to host a mega solar power plant on its premises.

A 2.14 MW solar plant has just been set up and is all set for ribbon-cutting, it is learnt.

The airports of Kochi and Bhubaneswar have solar plants, but they are of 100 kW capacity each. Delhi is the first to have a megawatt scale, ground-mounted system.

As a thumb rule, at latitudes such as of Delhi, a 1 MW solar plant will generate 1.5 million units of electricity. Delhi International Airport Ltd will save at least Rs 2 per unit of electricity over what it pays now.

An expansion of the solar plant’s capacity is on the cards.

Vast areas

India has 136 airports, some of which are spread over vast pieces of land.

For example, the Hyderabad International Airport is spread over 5,400 acres while Chennai sits over 4,000 acres.

Large-scale solar plants are possible. Hyderabad, for instance, can house 25 MW.

The plant has been built for Delhi International Airport Ltd by German company called Enerparc, which specialises in airport solar projects among others.

Enerparc COO Stefan Mueller had told last year that only a ‘glare analysis’ would need to be done before putting up solar photo voltaic panels on airport lands.

“Airport interest in solar energy is growing rapidly as a way to reduce airport operating costs and to demonstrate commitment to sustainable airport development,” notes the US Federal Aviation Administration (FAA).

In 2010, FAA had brought out a document providing technical guidance to put up solar projects at airports.

The Changi airport in Singapore has a solar plant with a smaller capacity. The Kansai airport in Japan proposes to put up a large, 11.6 MW system.

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CAG audit of Discoms may be inevitable, tariff cut in doubt...

 

A federal scrutiny of the books of three private power distribution companies appears almost inevitable. But going by the available numbers, the sharp reduction in tariffs promised by both the BJP and AAP would be impossible without raising government subsidy.

A petition questioning whether the Comptroller and Auditor General has the mandate to examine books of private companies, especially when there is no revenue-sharing arrangement with the government, is pending in the Delhi High Court.

But it will be impossible for the new government not to take the fight to the Supreme Court if the HC verdict goes in favour of the discoms. Not doing so would be projected as favouring private companies at the cost of consumers.

Outgoing chief minister Sheila Dikshit had been opposed to a CAG audit and maintained -- rightly so, as the numbers show -- that tariffs in Delhi were lower than neighbouring states and other major cities.

Both AAP and BJP have been demanding CAG audit of discoms that have claimed a cumulative revenue gap of some Rs 20,000 crore owing to tariff revisions not keeping pace with rising costs, including for buying power.

But BJP raised the bar with its promise to cut tariff by 30% if voted to power. AAP went a step further and promised a 50% cut. It is a moot point whether such sharp reduction is possible or economically feasible. But in the backdrop of such tall talk, not pushing hard enough for a CAG audit would be seen as crony-capitalism.

But what would a CAG audit achieve when the Delhi government, with 49% equity in the discoms, has access to the balance sheet and financial details of discoms and can verify any gold-plating or false claim of revenue loss.

After all, discoms source nearly all of their power from public sector generation units at tariffs examined and approved by the central regulator in accordance with the provisions of the Electricity Act. The books are examined by the lenders headed by SBI -- a government bank.

What a CAG audit can achieve, then, is put to rest allegations of overpricing or other revenue leakage. But if the discoms come out unscathed, there would be no other way for the government to either raise tariff sharply or bail them out.

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Updates on Chhattisgarh, Delhi, MP, Mizoram & Rajasthan Power Scenario...

 

look at the five states where elections have been held reveals a mixed bag in terms of their achievements in power, a key constituent of the bijli, sadak, paani troika and which is often used as a yardstick for how governments have delivered on basic infrastructure.

The smaller states generally seem to have done better on key measurable parameters such as augmenting capacity at the generation end and cutting down on technical and commercial losses on the distribution side.

 

Even those that have done well seem to have focused their attention more on the upstream generation side, while the downstream distribution segment continues to do badly, with Delhi being the only exception.

Chhattisgarh

On power generation capacity, Chhattisgarh has made significant progress in facilitating pit-head projects, aided by the local availability of coal resources.

Private generation projects of about 22,000 MW are under construction and expected to start during the current five-year plan period. Plants of about 10,000 MW with MoUs signed have had land acquired, water supply contracted and environment clearances granted, but further progress has slowed down due to non-availability of coal. Plus, the Chhattisgarh State Generation Company has commissioned a 500 MW unit at Korba and another of 1,000 MW at Marwa is in advanced stages of commissioning.

On the flip side, the 1,320 MW Bhaiyathan project, Chhattisgarh’s showcase, has been stuck in a morass for five years. Quotes had been invited in October 2008, and the project, which came with captive coal blocks in Korba, was awarded to Indiabulls for a benchmark tariff of 81 paise per unit, one of the lowest rates discovered through the tariff-based competitive bidding route. The mines, however, could not receive forest clearance and the project has been stuck since.

On rural electrification, the Centre has placed the performance of Chhattisgarh — specifically with respect to the implementation of the former’s flagship Rajiv Gandhi Grameen Vidyutikaran Yojana —under the “unsatisfactory” category. Chhattisgarh has, in turn, blamed the central PSUs — NESCL, NHPC and PGCIL — that were appointed implementing agencies.

Also, Chhattisgarh has been reluctant to come to terms with the provisions of the Financial Restructuring Scheme for Power Distribution Companies, wherein 50 per cent of the outstanding short-term liabilities (STL) as on March 31, 2012, are to be taken over by the respective state governments. This amounts to about Rs 550 crore in the case of the Chhattisgarh State Power Distribution Co. Ltd. The government has said absorbing the STL may excessively burden the budget and sought a change in the structure of the scheme.

Delhi

Delhi has made significant progress in ramping up capacity in sync with rising demand, despite constraints of land and fuel. Last fiscal, Delhi met a peak of 5,642 MW, up from 4,408 MW in 2009-10, and is gearing up to meet a peak of 6,000 MW this fiscal. The state’s own generation capacity increased from 982 MW to 2,200 MW during the 11th plan and another 2,800 MW is proposed to be added during the 12th, taking the total capacity to around 5,000 MW.

On the distribution side, Delhi’s aggregate losses are down from 25.18 per cent four years ago to 15.15 per cent in 2011-12, as compared to the national average of 26.15 per cent. But the financial positions of the three private distribution utilities, especially the two run by BSES, are reported to be in bad shape.

Among showcase projects, the first 750-MW phase of the Bawana plant was commissioned in 2010-11. While the second 750-MW phase is almost ready for commissioning, the lack of supply of enough gas is holding up progress. Also, the project for islanding Delhi, which would put it on par with Mumbai, is being implemented and expected to be completed by 2013-end or 2014.

Madhya Pradesh

Generation capacity is up from 6,418.8 MW in March 2006 to 10,698.6 in March 2013. This is largely on account of capacity set up by central sector utilities, which have almost doubled capacity from 1,715.85 MW to 3,526.1 MW during the period. Also, while AT&C losses have come down from 37.79 per cent to 27.11 per cent between 2009 and 2012, these are still higher than the national average. The government says revenues have increased from Rs 4,521 crore in 2003 to 15,284 crore in 2013.

The government’s promises include 24×7 supply to non-agricultural consumers, 10 hours quality power for agriculture, and to make the state energy-surplus by 2014 with a focused thrust on solar, wind, small hydro and biomass projects. The contribution of renewable energy sources is targeted to go up from 5.31 per cent (499 MW) to 17 per cent (3,200 MW) by June 2015.

Mizoram

The small northeastern state managed to increase its installed capacity during the 11th plan by 15.6 MW and build 168.49 km additional transmission lines. Transmission and distribution losses at the beginning of the 11th plan were estimated at 52 per cent, which was brought down to 29.16 per cent by the end of the period. Plus, under the Rajiv Gandhi Grameen Vidyutikaran Yojana, the state electrified 94 villages (68.6 per cent of a target of 137), gave BPL connections to 15,144 households (55.2 per cent of the targeted 27,417) and set up four 33-kV substations, broadly on target. The construction of the Tuirial HEP (60 MW) by NEEPCO is reported to be progressing well and the government has cleared its equity share of Rs. 41.14 crore for evacuation of power from the Pallatana gas-based project.

Rajasthan

During the 11th Plan, the state added 4,219 MW to its capacity, with another 860 MW added during 2012-13, taking the total installed capacity to 11,168 MW. Another 3,415 MW from conventional sources is likely to be added by March 2014.
As part of the Congress government’s “vision 2017”, the state hopes to become “self-sufficient” in power generation by the end of 2013-14. Also, electrification is under way in all revenue villages with a population over 300 under the RGGVY. Rajasthan has been proactive in offering support of Rs 8,954.89 crore to its power utilities and is implementing a restructuring plan of Rs 19,254 crore proposed under the Centre’s debt restructuring scheme. Plus, the state has been aggressively promoting generation from renewable energy sources.

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Gurgaon Industries want power from open exchange...

 

Bogged down by the dismal standards of grid supply in Gurgaon, the industrial community here had proposed the idea of buying electricity from the open exchange a few years ago. The official permission for the same was also sought, but wasn't granted.

Most recently, the issue was once again brought up by senior industry representatives at a meeting held here with Devender Singh, the state's principal secretary (power).

"They are now discouraging us to go for open access," said S S Verma, the former vice-president of the chamber of industries of Udyog Vihar. The argument presented to the industrialists by the government official against open access touched upon the high costs that the move would entail. "He said that it was going to be expensive for small-scale industrialists," Verma said.

But the issue of expense, as it is, has remained a point of contention between the small industry and power authorities for years. Additional fuel surcharge, fixed charges, and soaring tariff rates have continued to make grid-supplied electricity dearer for Udyog Vihar's entrepreneurs.

"Why do they have these components in their tariff scheme? When we pay for infrastructure, for transformers, what are they charging so much money for? This is dictatorial," said a plot owner in Udyog Vihar Phase IV.

The industrial sector, according to recent data, accounts for the highest sector-wise consumption of power in Gurgaon - at around 45% of the total quantum of power supplied to the district. This, of course, translates to high revenues for power authorities. And letting industrial consumers shift to open access would mean significant loss of revenue for the discom.

A representative of the communications firm Genesis Burson-Marsteller said, "The government official asked why we want to shift to open exchange. And we said if you give us good enough reasons to stay, we will," said another industrialist who was present at the meeting.

Sources said a meeting between industrialists and senior power authorities is scheduled for Thursday. Discom officials were not available for comment.

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Delhi Secretariat to install 5 MW solar project to become energy self sufficient...

 

The Delhi Secretariat seems to become self sufficient for its power needs through Solar Energy as it is planning to install around 5 MW Solar Power Project in the premises.

 

In a meeting held between the Union Minister of Ministry of New and Renewable Energy  and Chief Minister of Delhi along with other senior officials, the proposal of 5 MW Solar Project for the secretariat was discussed and finalized.

Construction work will began once land is identified for this purpose and a contract to the EPC Contractor is awarded.

According to the Government, once the project is commissioned, the Secretariat will be able to harness the solar energy at Rs. 5 per unit for the next 25 years. 

However, the current requirement of the Secretariat building is only 2.5 MW; hence the balance power will be supplied to other offices of the Delhi Government such as Old Secretariat, Directorate of Information & Publicity office, Anti Corruption unit etc.

Earlier, the Chhatishgarh New Secretariat in Naya Raipur has installed the Solar Project for its power consumption needs.

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Additional Reading...

http://www.dnaindia.com/india/1865844/report-secretariat-to-generate-its-own-solar-energy

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