Tata Power discom suggests ways to reduce tariff in Delhi

Delhi's major power discom Tata Power Delhi Distribution Limited (TPDDL) has suggested a number of steps that it claims will reduce power tariff substantially in the national capital.
The government had asked the discoms to suggest ways and means to give relief to consumers by reducing power procurement costs among other measures during a meeting on February 25.
In a letter to Power Minister Satyendra Jain written last month, the company listed four steps to bring down tariff, chiefly among them are reallocation or surrender of power from old power plants, allocating a coal block to Aravali power plant, reallocation of gas among Delhi's generating companies and writing off regulatory assets by issuing tax free bonds.

According to TPDDL estimates, collectively, these moves would bring down tariff by almost Rs 2.70.
Elaborating on the suggested steps, TPDDL in its letter said plants like NTPC Badarpur, Dadri, NTPC gas-based plant at Dadri and Auriya, and power generation companies such as Rajghat coal based plant and Pragati Power are "very old" and have high variable cost.
"Moreover cost of gas-based plant is high due to inadequate availability of gas while fixed cost is being paid for full plant capacity. Gas from Delhi Gas turbine and Pragati gas plant can be reallocated to Bawana gas plant so that it operates at full capacity," the letter said.