Backing down its power units is proving to be costly for Maharashtra State Power Generation Co (MahaGenco). The state-run company is incurring heavy losses as it has to purchase power at higher rates from Maharashtra State Electricity Distribution Co Ltd (better known as MahaVitaran). Backing down means temporarily suspending operations or operating at a reduced load.
The quantum of loss due to the backing down of MahaGenco’s Chandrapur unit with a generation capacity of 2,340 Mw has increased by a record 400 per cent year-on-year, following MahaVitaran’s contracts with JSW, Wardha Power and Adani Power.
After failing to get relief from the Maharashtra Electricity Regulatory Commission (Merc), MahaGenco has now approached the Appellate Tribunal on Electricity (Aptel) with a plea that the impact of backing down of its units should be considered while valuating its performance during the year. MahaGenco Managing Director Asheesh Sharma told Business Standard: “We have approached Aptel so that relief can be granted to us in terms of operational norms, which have been prescribed for us by Merc. Backing down is an uncontrollable factor for us and it should be taken into account while valuating our annual performance.”
In its ruling delivered in June, Merc had observed MahaGenco’s units were subjected to backing down instructions as an operational requirement. It further said instances of backing down for operational reasons in response to system emergencies through revisions in schedules or through oral instructions from the state load despatch centre might occur during the operational period.
MahaGenco’s move to petition Aptel against Merc’s order comes at a time when MahaVitaran is seeking extension of its medium-term contracts with JSW and Adani Power for 750 Mw of power.
MahaGenco has raised concerns about the frequent backing down instructions received at its stations. “The cost of MahaGenco’s thermal stations is regulated according to the Merc Tariff Regulations as amended from time to time. The regulations specify the technical parameters such as availability, station heat rate, specific oil consumption and auxiliary consumption,” said another MahaGenco official.
“The variable cost of generation is determined using the normative technical limits. On account of frequent back down instructions, MahaGenco power generation stations have further deviated from the normative limits,” the official added.
The official claimed that MahaGenco’s power purchase rates could not be compared with private producers because they varied, depending on the location and fuel availability.
Meanwhile, MahaVitaran clarified there was no favouritism to anybody. It added that being an independent body, the state load despatch centre was acting strictly in accordance with the provisions of the Electricity Act, 2003, regulations of the Central Electricity Regulatory Commission and the Maharashtra Electricity regulatory Commission. It also argued that orders of backing down were to ensure the grid safety.
According to MahaVitaran, it draws power through short, medium, long-term power contracts and also through non-conventional and infirm power (wind, solar) and day-ahead/week-ahead power purchase from power exchanges.
