DERC writes to Power Ministry on deallocating Delhi's share of power from NTPC plant

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New Delhi, July 12 (PTI) Delhi Electricity Regulatory Commission (DERC) has written to the Union Power Ministry urging it to deallocate the national capital's share of power from Dadri-I generation plant of NTPC to other states, saying it will benefit consumers in the city.

The BSES discoms in Delhi had stopped scheduling power from Dadri-I plant of NTPC in November last year after it completed 25 years of operation, officials said.

The discoms had sought exit from Dadri-I plant but the NTPC had denied it to them after which they had approached the Central Electricity Regulatory Commission (CERC) on this issue.

'The BSES discoms are paying Rs 35 crore per month as fixed charges despite not having any power from the plant, as fixed charges,' officials said.

The DERC, in its letter dated July 7, urged the Power Ministry for permanent deallocation of power from Dadri-I generation plant to Delhi, from December 2020.

It will 'avoid the burden of fixed cost without power scheduled to end consumers of Delhi,” stated the letter.

The CERC in its recent order, had recognised the position of BSES discoms, that upon completion of 25 years of the plant from its commercial operations date (COD), they can exit the power plant, they said.

Earlier in March, the Ministry of Power too had issued guidelines enabling discoms to either continue or exit from power purchasing agreements (PPAs) after completion of the term beyond 25 years, they added.

The DERC said in its letter that the deallocation move from Dadri plan will ultimately benefit the consumers of Delhi.

Welcoming the CERC order on July 1, the BSES in a statement had said that the 'landmark judgement' will bring down power purchase cost of the discoms and help in lowering power tariff and benefit its 45 lakh consumers in Delhi. PTI VIT HDA

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