Ntpc, Western States Set To Sign Supply Pact

The National Thermal Power Corporation (NTPC) will sign a multilateral agreement with several states of the western region. The West Region Electricity Board (WREB) will be a signatory to the agreement. The power flow will begin even before the agreement is signed later this month since the parties involved have reached an agreement on commercial and technical issues.

Export of power is expected to commence any moment. The engineers are busy clearing some last minute technical snags.

While the first initiative to import surplus power from the eastern region was taken by Madhya Pradesh, states of the western region began clamouring for a share of the power. The states keen to import the power are Madhya Pradesh, Gujarat, Goa, Daman & Diu and Nagar Haveli. Maharashtra which also showed initial interest may opt out as the share of power will not be large.

The power will be priced as per the formula already accepted by Andhra Pradesh in the southern region. NTPC which has three power stations at Farakka, Kahelgaon and Talcher in the eastern region, charges different rates for power generated at the three stations.

For all exports outside the region, it will be assumed that 70 per cent of the power has originated from the Talcher station which sells the most expensive power. Another 20 per cent will be priced at the rate of the Kahelgaon station which is the second most expensive station. The remaining 10 per cent will be priced at the Farakka stations rate of tariff.

Besides the price paid to NTPC, the importing states will also have to pay to Gridco of Orissa for wheeling the power from the eastern to the western region grid.

Here too, the same rate of 17.5 paise a unit as charged to AP will be charged.

The Central Electricity Authority (CEA), however, is not happy with the rate of wheeling charge. It has appointed a committee to calculate the wheeling cost and also the loss of energy during transmission. It is customary for the importing states to bear the transmission loss. The exporter will raise its bill on the basis of the energy it releases for export.

WREB will be a signatory to the agreement since it must agree to make the global billing detailing the import of the power by each state in the region.