PSPCL to surrender 12,807 MUs as surplus power

Amid claims of surplus power available, Punjab's power utility PSPCL has projected to surrender 12,807 million units (MU) of surplus power, sourced from central generating stations and upcoming private thermal units, in year 2014-15.
With Punjab State Power Corporation Ltd (PSPCL) not submitting any proposal to utilise the surplus power, the surrendering of this energy will entail whopping fixed cost of Rs 1,706 crore.
"The impact of fixed charges to be borne due to surrender of surplus power has been projected as Rs 1,706 crore," as per new tariff order announced by power regulator Punjab State Electricity Regulatory Commission (PSERC) "PSPCL has not submitted any proposal to utilise/sell this power within the state or outside the state...

"However, PSPCL has stated that due to capacity overhang across the country, it may be difficult to sell surplus power outside Punjab," as per order.
Out of projected surrender of surplus energy, power which will be surrendered from upcoming private thermal plants in Punjab will be 5,438 MUs from Talwandi Sabo thermal power plant, 2,346 MUs from Rajpura thermal plant and 203 MUs from Goindwal Sahib thermal plant.
Out of total energy requirement of 46,516 MUs in the state, power regulator has approved power purchase of 19,240 MUs while rest of requirement will be met through own generation from thermal, hydro and share from BBMB project.

PSPCL has cited maintaining energy balance as reason for surrendering surplus power.

"In order to manage and to maintain energy balance, the surplus power during FY 2014-15 has been projected to be surrendered by PSPCL, on merit order of power purchase from these stations," as per order.
However, power regulator also observed that the fixed cost of Rs 1,706 crore could only be recovered if it is sold within the state or outside the state.
"The total loss of fixed cost of Rs 1,706 crore can be recovered if the whole of the surplus power of 12,807 MUs as projected by PSPCL in the ARR is sold within the state or outside the state, which seems to be unlikely," PSERC said.

In a bid to reduce the burden of fixed cost arising out of surrender of surplus power, the PSERC came up with the proposal to offer rebate of Rs 1 per kWh to consumers.
"It is expected that about 3,000 MU out of a total surplus power of 12,807 MU may be sold if a discount is given on power consumption beyond a threshold," it said.
"This will result in reducing extra fixed cost of surrendered power to some extent," it further said.