Chennai: In an effort to avoid high-cost power purchase, Tamil Nadu Generation and Distribution Corporation has opted for cheaper round the clock (RTC) power supply to the "high cost" peak power to meet the power demand during February and May months.
Tangedco had got the approval of Tamil Nadu Electricity Regulatory Commission to procure 350 MW RTC power and 500 MW peak power from February 2 to May 15 on a short-term basis.
The public utility, anticipating a shortfall in the peak demand and sustained demand of power between February and May, proposed to procure power on a short-term basis to meet the requirement. When the bids were opened for the short term purchase, the discovered rate is in the range of Rs.2.92 to Rs.3.15 per unit for the requisitioned quantum of 350 MW RTC power and Rs.3.60 to Rs.5.80 per unit for a quantum of 410-500 MW against the requisitioned quantum of 500 MW peak hour.
Incidentally, all the successful bidders are from the North East Western Region (NEW). But the available transfer capacity from NEW region to SR region for short-term purchase is mere 85 MW, that too available only for 12 hours. Considering the anticipated power requirement, Tangedco decided to examine the offers received from the sources in the Southern Region.
Among the 27 bids, the bidders from SR have offered a total quantum of 1,180 MW and quoted in the range of Rs 3.5 to Rs. 5.5 per unit for RTC power for the different requisition periods, the Tangedco mentioned in its affidavit. After its request to the bidders to offer unconditional discount considering no congestion in power flow within the Southern Region, the total quantum from the SR who have quoted up to Rs 4 per unit comes to 672/632 MW, it noted. However, the response for peak power was poor with two offers only for 125 MW at a quoted rate of Rs 5.16 per unit and Rs 5.80 per unit. Last year, Tangedco procured peak power for Rs 5.05 per unit.
Considering the circumstances, TNERC approved the proposal of Tangedco to procure RTC power from the bidders who have offered rates up to Rs.4/- per unit to ensure seamless flow of power instead of its previously approved 350 MW RTC and 500 MW peak power.
