AIPEF demands reallocation of power to northern states

All India Power Engineers Federation (AIPEF) has demanded reallocation of power to northern states from central generation plants in view of the prevailing power shortage.

The Federation said the matter was urgent since all northern states, except Delhi, were paying ‘heavy penalty’ in lieu of unscheduled interchange (UI) charges due to power shortage, while Delhi distribution companies (DISCOMS) were earning huge money through UI by surrendering surplus power.

AIPEF has written a letter to the union power minister and forwarded copies to the Planning Commission and union power secretary.

UI refers to buying/selling of electricity beyond the planned sale/purchase as envisaged in long-term power purchase agreements to maintain grid frequency.

Due to overdrawing by states, the grid frequency falls substantially and other states do not get their due share of power, hence the UI penalty is imposed.

According to AIPEF, Delhi DISCOMS had earned Rs 764 crore through UI drawl by northern states during 2010-11, while Haryana, Uttar Pradesh, Punjab and Rajasthan paid heavy penalty.

Following UI drawl during 2010-11, Haryana had paid Rs 1,134 crore, UP Rs 898 crore, Rs 880 crore and Punjab had paid Rs.521 crore. Even a small state like Uttarakhand had paid Rs177 crore on account of UI charges.

Federation secretary general Shailendra Dubey noted these states were short of power, while Delhi had been allocated surplus power against requirement.

He said since Haryana, UP, Rajasthan and Punjab were forced to overdraw and pay huge UI penalty, it showed these states were facing substantial power shortage.

If Delhi DISCOMS were earning money by surrendering allocated power, then it was clear they had surplus power and UI had become a regular mechanism for them to earn money, Dubey mentioned in his letter dated July 26, 2011. “This situation is very alarming and requires your (power minister) urgent attention. Certainly, UI cannot become a source of earning for private DISCOMS in Delhi,” his letter said.