Delhi discoms lose crores to meet winter power shortfall

Supplying uninterrupted power to the national capital might burn a hole in the pockets of power distribution companies or discoms.

Discoms in Delhi spent around Rs 750 crore to purchase additional power to meet the peak winter season demand last year. They fear, this year too, they would have to buy power from the spot market to make up for the shortfall.

"For ensuring reliable power supply, discoms, generally arrange for electricity, keeping a buffer for unexpected contingencies. So that gap, if any, is made up through banking and buying power from the exchange," said a senior executive of one of the Delhi discoms. Price of short-term power is usually higher and market-determined.

The three discoms in the national capital are Tata Power Delhi Distribution Company (TPDDL), Anil Ambani-promoted BSES Yamuna Power Limited (BYPL) and BSES Rajdhani Power Limited (BRPL). To meet the round-the-clock demand, the discoms need more than the contractual supply. "Add to this, the massive fluctuations in demand due to sudden and unpredictable weather, the discoms have to keep in place surplus supply," said the executive, "Power fluctuations could be as drastic as 500 to 1,000 Mw drop in the power demand in Delhi in a matter of minutes."

The discoms lose between Rs 0.7-1.50 on every unit of surplus power sold, depending on the season. According to the report of discoms, in the last winter, they incurred a loss of around Rs 750 crore on the sale of surplus power. A senior executive at one of the discoms, however, pointed out that the discoms attempt to sell surplus power with planning and forecasting, the cost is higher. "But even this is becoming increasingly difficult with Central Electricity Regulatory Commission regulations ensuring grid discipline," said the executive.

The discoms are already facing cash crunch and awaiting tariff hike to pass on the increasing cost of procuring power. The recent tariff hike by the Delhi Electricity Regulatory Commission was rolled back in just 18 hours of issuing it, citing lack of technical details.