In a bid to ensure uninterrupted, affordable and qualitypower supply to the consumers across the state, the Punjab Chief MinisterCharanjit Singh Channi on Tuesday gave a go ahead to the Punjab State PowerCorporation Limited (PSPCL) to immediately issue notice to Talwandi Sabo PowerLimited (TSPL) for repudiation of its Power Purchase Agreement (PPA).
Pointing out further, CM Channi said that this step hadbeen taken to safeguard the interest of consumers of the State by way ofreducing the burden of costly power.
According to a spokesperson of the Chief Minister’sOffice, the average per unit charges (fixed + variable) remained at Rs. 5.10,Rs. 5.55 and Rs. 5.30 during FY 18-19, FY 19-20 and FY 20-21 respectively.Whereas, the average cost of power per unit discovered in the short-term marketfor these years has respectively been Rs. 3.86, Rs. 3.21 and Rs. 3.01.Resultantly, now taking the average cost differential between TSPL power andthe short-term market power @ Rs. 2 per KwH as per prevailing trends and theunits scheduled from TSPL as 9000 MUs; the additional cost being incurred byPSPCL per annum at the present rates is about Rs. 1800 crores and the liabilityfor the remaining period of PPA works out to Rs. 36000 crores. Even if it isassumed that the energy scheduled from TSPL would gradually rise to about 12000MUs due to increased demand and considering a conservative cost differential ofRs. 1.50 per KwH, the liability remains the same.
Divulging further, the spokesperson said that due to itshigher variable rates, TSPL is placed lower down the merit order and as aresult lesser quantum of power is scheduled, whereas PSPCL has to pay fullcapacity charges for the declared availability of the plant. Since, FY 2014-15till FY 2020-21, 24176 MUs of energy has been surrendered while fixed chargesof about Rs. 2920 crores have been paid by PSPCL for such energy. The cost ofsurrendered power from this plant was Rs. 389 Cr, Rs. 756 Cr. and Rs. 446 Cr.during FY 18-19, FY 19-20 and FY 20-21, respectively. With further penetrationof renewable energy having ‘must run’ status, the power surrender is likely toincrease and thus costing power from TSPL, even more, added the spokesperson.
It may be recalled that the state government had alreadygiven green signal to PSPCL’s proposal to terminate GVK Goindwal Sahib (2x270MW) PPA. Subsequently, the termination notice has been issued to the defaultingcompany.