CERC order: BSES to approach Centre to stop buying power from NTPC Dadri-1 power plant

In accordance with CERC’s 2019 tariff laws, discoms got a chance to proceed sourcing electrical energy which have accomplished 25 years on mutually agreed phrases with producing corporations.

The Central Electrical energy Regulatory Fee (CERC) has allowed certainly one of Delhi’s energy distribution corporations (discoms) BSES to method the Union energy ministry for de-allocating its share of electrical energy provide from NTPC’s Dadri-I producing station. The plant provides energy at a mean price of Rs 6.50/unit, making it one of many costliest energy stations offering electrical energy to the Nationwide Capital Area. “It will convey down the facility buy price of the facility distribution corporations (diiscoms) and assist in reducing the facility tariff, thus benefiting the 45 lakh customers of BSES in Delhi,” a spokesperson from the personal discom in Delhi mentioned.

BSES had entered a consolidated energy buy settlement (PPA) in June, 2007 with NTPC for supplying electrical energy from its varied producing stations, together with the 840 mega-watt (MW) Dadri-1 unit. The validity of the PPA was until March 2012, after which the 2 events entered right into a supplementary PPA extending the expiry dates provide interval. The Dadri-I station, commissioned in December, 1995, accomplished 25 years of operation on November, 2020 and BSES claimed that the validity of the PPA was until the top of lifetime of the respective producing stations from which NTPC was to provide energy.

In accordance with CERC’s 2019 tariff laws, discoms got a chance to proceed sourcing electrical energy which have accomplished 25 years on mutually agreed phrases with producing corporations. The laws additionally allowed the discom the “first proper of refusal” for procuring electrical energy from previous energy crops. Accordingly, BSES in November, 2020 sought to cease taking energy from Dadri-I producing station from December 1, 2020. BSES consumed 621 MW from the Dadri-1 plant, comprising 74% of the unit’s whole capability.

NTPC claimed that contracts with BSES have been composite agreements in respect of the procurement of energy from plenty of producing stations of NTPC together with Singrauli, Rihand Stage I, Anta, Auraiya, Dadri Fuel, Unchahar Stage I and Dadri-I energy crops. The state-run energy generator mentioned that BSES can’t object to obtain energy from the Dadri-I plant citing previous age, whereas persevering with to avail electrical energy from Singrauli and Rihand crops, which had accomplished 25 years even earlier than Dadri-I.

The CERC mentioned that “even when producing stations reminiscent of Singrauli and Rihand producing stations have accomplished 25 years of operation, the beneficiaries have the liberty whether or not or to not train their first proper of refusal in availing energy from these producing stations”.