MSEDCL wants change in power purchase mode

MSEDCL has filed a petition before the Maharashtra Electricity Regulatory Commission (MERC), seeking to purchase power on round the clock

(RTC) basis for implementing zero load shedding (ZLS) in six cities. Currently, MSEDCL is purchasing power for the six cities for twelve hours. The MERC has scheduled a hearing on this petition on January 7 in Mumbai at 12 noon. MSEDCL officials says that if the petition is given the green signal then it would reduce ZLS surcharge substantially.

MSEDCL managing director Ajoy Mehta told TOI that the distribution company had tied up power for ZLS at Rs 6.26 per unit for twelve hours between 6am to 6pm for twelve months. However, power sellers told MSEDCL that if it purchased power round the clock then the average cost of power would be Rs 5.50 per unit. Mehta said that if MERC approved MSEDCL's proposal, then ZLS surcharge would go down by 10 to 15 paise per unit.

Mehta said that MSEDCL had told MERC that whenever there was a shortfall in the grid, MSEDCL would supply this power to the entire state. "Currently, the costliest power we are purchasing is from Dabhol at Rs 4.40 per unit. The power traders are ready to provide power at Rs 5.50 per unit."

MSEDCL has urged MERC to approve the compensation to the extent of excess power that would be available to the grid at the highest rate of long term power purchase of MSEDCL through tariff. This means that if power at night is available at more than Rs 5.50 per unit then it would not be bought for the state and instead the RTC power for ZLS would be used.

The company has also urged MERC to allow it to hold another public hearing in Nashik. The consumers of Nashik had rejected the ZLS proposal in the public hearing held in early November while consumers of Pune, Navi Mumbai, Thane, Aurangabad, Nagpur and Amravati had overwhelmingly supported it. However, now some consumer organisations have approached MSEDCL claiming that the city's consumers have changed their minds.