Telangana State Electricity Regulatory Commission (TSERC) has approved the procurement price of 550 MW power by the two discoms under DEEP (Discovery of Efficient Electricity Price) scheme at ₹4.29 per unit. The power is being procured from 2019-20 in two staggered periods a year for three years from the stressed coal-based power projects in the country.
It was supposed to become available to the two discoms of Telangana from February 2019 but the completion of the term of office of the two members and Chairman of the Commission in late 2018 and early 2019 has delayed it by a year — due to the delay in the process for approval of the procurement first and due to insistence on approval for the tariff.
The two discoms — Southern Power Distribution Company of Telangana Ltd (TSSPDCL) and Northern Power Distribution Company of Telangana Ltd (TSNPDCL) — have sought approval for payment of tariff of ₹4.24 per unit discovered through the competitive bidding under DEEP process and in addition a trading margin of ₹0.05 per unit for procurement of 550 MW power for a staggered period of 6 months in a year — February to April and July to September — for three years from 2019-20 to 1921-22.
Pilot agreement
As part of the scheme, a Pilot Power Supply Agreement was signed between the discoms and the aggregator Power Trading Corporation of India Ltd (PTC) in October last year with R.K.M. Powergen Private Ltd being the power producer located in Chhattisgarh under the pilot scheme for stressed thermal assets notified by Ministry of Power (MoP).
“The Discoms have decided to procure power with the anticipated increase in the energy demand from lift irrigation projects, particularly Kaleshwaram, and also from Mission Bhagiratha drinking water project from the 2019-20 fiscal for staggered period of six months a year in two spells — July-September and February-April”, a Northern Discom official said. It was proposed to purchase 550 MW power based on the load profile of the two discoms.
Coal supply
However, power supply to discoms has not commenced till date as fuel (coal) suppliers to the power producer South Eastern Coal Fields Ltd (SECL) have been insisting upon the generator for TSERC approval for payment of the discovered tariff by the discoms to the aggregator (PTC) for release of fuel linkage. But, there has been delay in the approval of tariff as the then Chairman of TSERC had demitted office on completion of his tenure on January 9, 2019.