While there has been no response from the Ministry of Power on surrendering expensive electricity in Delhi as yet, power utilities have come up with an alternative to avoid buying it. The distribution companies are now engaging in “power banking” which is helping them save as much as Rs.200 crore.
Power banking, which means exchange of electricity between different States is turning out to be a popular means to avoid purchase from old and ailing generation stations. Under this arrangement, discoms in Delhi have begun to export power to various States during the off-peak winter months of October to March and the same is imported back during the summer months of May to September.
In the Capital, discom Tata Power Delhi Distribution Limited (TPDDL) has entered into power banking arrangements with at least three States, including Jammu and Kashmir, Madhya Pradesh, Meghalaya and Odisha among others. “Almost 200 MW to 250 MW of power is exported by TPDDL during the off-peak months and the same is imported back during the peak summer months. There is no money involved in this. It is plain barter system,” said Praveer Sinha, CEO and MD, TPDDL.
Costs of NTPC plants and Delhi Genco’s have increased by nearly 50 per cent to 160 per cent during the last five years. Most of these plants are now supplying in the range of Rs.5 to Rs.11 per unit leading to increase in consumer retail tariffs. Hence, the move besides helping in maintaining reliability and consistency in supply will also enable power utilities to save substantial amount.
Between October 2014 and March 2015, the discom which supplies power to North Delhi areas exported approximately 400 Million Units (MU) of power which it got back in the summer months from May to September, 2015. “Had these 400 MUs been purchased by a discom then the same would have resulted in financial outflow of Rs.200 crore, assuming the per unit cost of power purchased as Rs.5,” said an official.
For the period of October 2015 to March 2016, discoms have already tied up banking export of around 1200 MUs, mainly with States like Jammu and Kashmir, Odisha and Chhattisgarh. Return banking against the same shall be received from May 16 to September 16.
Subsequent to the banking of power, discoms have initiated the reallocation of costly power as well which resulted in additional savings of Rs.400 crore. The Delhi government has already written several letters to Union Power Minister Piyush Goyal for surrendering or reallocation of costly power procured to the tune of 2255 MW from NTPC stations. But, the Centre is yet to respond on the issue.
Discoms in Delhi have begun to export power to various States during the off-peak winter months of October to March and the same is imported back during the summer months of May to September
