NDMC to seek flexibility in electricity purchasing agreement

The New Delhi Municipal Council is planning to approach Union Power Ministry for entering into a "saving deal" for purchasing less electricity during the winters.
As per its current agreement with the Delhi Transco Limited (DTL), NDMC purchases approximately same amount of electricity throughout the year.
"As the usages varies widely in summers and winters, we will approach the ministry for giving us some flexibility and revising the current agreement. I would pitch for two slots from October to April and March to September," NDMC Chairman Jalaj Srivastava said.
Till 2005, NDMC was supplying electricity in its areas according to its own format which allowed surplus power to be sold at the best prevalent rate.

But that system was done away with by the Delhi Electricity Regulatory Commission (DERC) and surplus electricity is now sold to discoms at lower rate compared to the purchase rate.
The NDMC suffered a loss of Rs 150 crore last year by selling off surplus power at rates lower that at what it had bought it.
The Union Home Ministry had last year pulled up NDMC for "mismanagement", pointing at losses sustained by its power department and the failure of the civic body to check unregulated 'teh bazaari' or street vending, in areas under its jurisdiction.
"I will be taking up the issue with the ministry in April. The major hurdle lies with the difference between the buying and the selling cost and as there is likely to be no flexibility in the rates at which the NDMC can sell off the surplus electricity, we will seek a revision in the agreement on buying power," Srivastava added.