Wednesday, September 23, 2020


Renegotiate PPAs with developers - PSEBEA

January 24, 2020 03:43 PM

CHANDIGARH: The power purchase agreements (PPA’s )  are required to be renegotiated and the private firms should be asked to sell the power elsewhere during the lean period with no claim of fixed charges.

PSEB Engineers Association (PSEBEA) has written to the Chief Minister suggesting that a high powered committee of Group of Ministers may be authorized to renegotiate the PPAs with the developers. It is pertinent to mention here that recently  TATA power has
re-negotiated the PPA with a plea that its cost has increased.

The main reason for the high cost being paid by consumers is the high purchase cost of power from private Power Plants and the higher rate of taxes and duties levied by the State Govt. The quantum of power being tied up is much more than the requirement and moreover the type of agreement with power plants being set up are not matching with the load profile of the state. The PPAs are heavily skewed in favor of the developers.  Now the clause of payment of deemed generation, even without drawing a single unit of power, has
become the biggest bane.
The issue of high commercial losses in certain pockets of the state. PSPCL management has tried to check the theft in the areas where the losses are higher, however, the vested interest supported by local-level politicians has started threaten the PSPCL officers/staff who go for checking.

If we are able to decrease the commercial losses in power theft-prone areas PSPCL can generate extra revenue of Rs 1200 Crore.

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