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UPERC restricts state power utilities to ink new PPA till December 2022

Monday, 15 Jul 2019
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The Uttar Pradesh Electricity Regulatory Commission (UPERC) has restricted state electricity distribution companies from signing any long-term power purchase agreements (PPA) with coal-based thermal power plant till December 2022.

UPERC has observed that the Uttar Pradesh Power Corporation (UPPCL) and state distribution companies (discoms) had already contracted for sufficient thermal power with coal-fired power plants to meet projected demand till 2026-27.

Moreover, UPERC will review energy capacity, demand and availability status in December 2022 to consider the need for any long term PPAs with coal-based thermal power plant, keeping in view 54 months gestation period required for thermal projects.

UPPCL and discoms have been given consent to procure short-term seasonal peak power from energy exchanges, Centre or through bilateral banking arrangement with discoms in other states.

Also, a memorandum has been submitted to Uttar Pradesh Energy Minister Shrikant Sharma for reviewing the PPAs signed with private power producers. A private thermal power plant is supplying electricity at a cost of Rs 9.47 per unit rate even as average procurement cost from private plants comes to Rs 4.73 per unit. While the state government operated coal-fired units are supplying power at Rs 3.56 per unit, the central sector thermal power plants supply at a cost of Rs 3.46 per unit.

UPPCL projected its annual revenue requirement at Rs 75,201 crore for FY20. Of this, over Rs 54,000 crore will be incurred on purchasing power for supplying in the state.

 
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