DERC asks govt to deallocate power from Dadri-I pant for Delhi

14 Jul 2021 CW Team

The Delhi Electricity Regulatory Commission (DERC) has asked the Ministry of Power to permanently deallocate Delhi’s power share from NTPC’s Dadri-I generation station.

It has asked that Delhi's share be urgently reallocated to other states in need, with effect from December 1, 2020, to avoid the burden of fixed costs with no power scheduled for Delhi's end consumers.

After completing the plant 25 years after its commercial date of operation, the BSES discoms stopped scheduling power from the plant in November 2020 and sought to exit the Dadri-I plant. The BSES discoms approached the Central Electricity Regulatory Commission (CERC) after NTPC denied the exit.

Despite the expiration of the agreements with NTPC and the plant's power costing Rs 6.5 per unit not being scheduled, the discoms continue to pay NTPC around Rs 35 crore per month in fixed charges.

The ministry of power had also issued guidelines in March allowing discoms to either continue or exit power purchasing agreements (PPAs) after the term had been extended beyond 25 years. The CERC recently recognised the position of BSES discoms, stating that they can exit the power grid after 25 years from the plant's commercial operations date (COD).

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Also read: UP electricity body asks UPPCL to pay Rs 7,244 cr in regulatory fund

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