Rajasthan to purchase additional electricity worth Rs 4,152 Crores

The three power corporations in the state have made arrangements to procure additional power valued at Rs 4,152 crore for the fiscal year 2023-24. Notably, discussions have been held this year to purchase the power from the Rajasthan Electricity Regulatory Commission (RERC) at a fixed rate.To facilitate this, the power corporations have requested permission from the RERC. The power utilities contend that fixed peak tariffs, which apply during periods of highest electricity demand, differ from the rates prevalent in the energy exchange. As a result, the financial condition of the Discom is expected to deteriorate further.

There is a demand to amend the timeframe set by the Commission for procuring electricity. The restriction on capping power purchases should be eliminated. In the event of purchasing electricity, the incurred expenses along with any delays during that period should be permitted to be recovered as an additional surcharge. 

What is the reason behind the requirement for additional electricity?

• To address the electricity shortage during the Rabi season, electricity was borrowed from UPPCL (Uttar Pradesh Power Corporation Limited). Now, the borrowed electricity needs to be returned between April and September 2023.
• There is a disparity between the electricity availability and the demand from states that have power units. The current power availability stands at 61%, significantly lower than the total capacity of 4,425 MW.
• Discoms lack authority over power procurement from the Energy Exchange. The difference in demand and supply has led to electricity being available in the market at high prices.
• During the previous summer, electricity had to be procured at elevated rates. Considering the rising demand, there is a potential for higher prices in the Energy Exchange this year as well.
• The Ministry of Power cautioned the Discoms about the high demand of electricity in summer and instructed them to maintain a stock of coal in response to this issue.

Source: Rajasthan Patrika