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Home News Power Sector News DERC regulates short-term power purchase

DERC regulates short-term power purchase

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DERCTightening the noose around private power companies in Delhi, regulatory body Delhi Electricity Regulatory Commission (DERC) streamlined the process of procurement and sale of short-term power (for less than one year) in the city. Seeking to make the entire process more transparent , the regulator has not only made stipulations making it necessary for discoms to go for competitive bidding while purchasing short-term power and also made it mandatory for them to upload the requirement of power availability/surplus for the year on its website, which is to be updated regularly on the last of every month.

"Long-term power procurement is not a problem as the tariff there is fixed by CERC. But short-term power procurement was a grey area wherein discoms would make banking and bilateral arrangements in states as per their own will. There was a need to regulate this and we felt discoms needed to follow competitive bidding as they would get economical rates. Last year, power purchase costs would have been lesser had discoms followed competitive bidding,'' said DERC sources.

Discoms have been directed to prepare an annual power procurement plan indicating month-wise power requirements and sources from the where the power is proposed to be secured. This plan will then discussed in the Delhi Power Procurement Group (DPPG) wherein the projections may be revised or modified at any time during the year.

Discoms have also been directed to publish advertisements in leading newspapers once a year for information of bidders, to see the website regularly on the last date of every month for quantum available of sale and purchase of power. `` All shortterm arrangements for procurement or sale/purchase of power through a transparent process of open tendering and competitive bidding,'' confirmed an official.

DPPG also retains the power to examine any procurement of power before the discoms commits itself to the bidder and cancel it if it finds the bid to unreasonable high or low or any improper conduct in the procurement process.

The new guidelines also say that in case of emergencies rising out of failure of transmission lines or generator outage, emergency purchase of power will be done through the power exchange only. In case of sudden drop of load demand due to weather conditions, similar provisions would be adopted for sale of surplus power.

Source- Times of India


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