Maharashtra will have to pay higher levelised rates for power purchases in the coming months to keep load shedding away.
A levelised rate means the average fixed and variable rate over the entire term of a power purchase agreement. State-run Maharashtra State Electricity Distribution Company (MahaVitaran) said power purchase during medium-term contract would be at the prevailing Rs 4-4.90 a unit.
The high rates are largely due to constraints in the availability of fuel and rising demand from states.
MahaVitaran’s medium-term contract with Adani Power for the supply of 400 Mw at Rs 4.10 a unit ended in September, while a similar deal for 300 Mw from JSW would be over by the end of October at the same rate.
As reported by Business Standard last week, MahaVitaran has already countered MahaGenco’s (Maharashtra State Power Generation Company) claim of supplying power at Rs 2.70 or Rs 3.20 and said it was an average rate and the power was not available, especially during the peak period.
MahaVitaran will soon take a call on renewal of its contracts with Adani Power and JSW. It would also explore the option of calling fresh bids. MahaVitaran is procuring power from Ratnagiri Gas & Power Private Limited (formerly the Dabhol project), at Rs 4.85 a unit and was also procuring power at Rs 4 a unit from MahaGenco’s various units. Experts corroborate Maha-Vitaran’s argument on prevailing rates.
According to a senior representative of an independent power project, the medium-term rate in Andhra Pradesh is Rs 4.24 per unit, Rs 4.80 in Tamil Nadu, Rs 4 in Madhya Pradesh and Rs 4.25 in Karnataka.
A MahaVitaran official told Business Standard: “The power purchase for 2012-13 is estimated at 51,591 million units (MUs) against 43,753 MUs in 2011-12.
The outgo towards power purchase is projected at Rs 16,001 crore. MahaVitaran has considered the entire power available from all the sources to meet the demand to the extent possible and to ensure more availability of power.
The MahaVitaran official added load shedding was restricted to about 800 Mw, as it was procuring 12,700 Mw against the demand of 13,500 Mw (excluding Mumbai).
D Radhakrishna, a power sector analyst, said: “Electricity utilities are buying power every year worth Rs 200,000 crore, and power cost is one of the major factors in spiralling the tariff, which is almost reaching double digits.”