Discontinuation of power supply of 3,000 MW by two top private players, forcing state utility Gujarat Urja Vikas Nigam Limited (GUVNL) to purchase power from costlier sources, is putting daily burden of Rs10 crore on the state's power consumers.
Adani Power has signed long-term power purchase agreements with GUVNL to supply 2,000 MW power, and Essar 1,000 MW. Adani is contracted to supply 1,000 MW at Rs2.35 per unit and another 1,000 MW at Rs2.89 per unit, while Essar is required to supply 1,000 MW electricity at Rs2.80 per unit. Both power producers have stopped supplying electricity to the state utility citing higher cost of generation than the tariffs they are entitled to.
In absence of power supply by the two major producers, whose supply accounted for nearly 20% of the state's peak power demand of 15,500 MW, GUVNL is being compelled to purchase power from alternate, but costlier sources.
Energy and regulatory expert KK Bajaj said that GUVNL is purchasing power from Indian Energy Exchange and other power producers for prices ranging from Rs4.50 - 5 per unit.
"GUVNL is paying nearly double the power price as compared to the two private players. It is also purchasing costlier power from gas-based power plants of Gujarat State Electricity Corporation Limited (GSECL) by shelling out nearly three times the price. This is putting burden of Rs10 crore per day on power consumers in the state," he said.
Experts said that the burden on power consumers would go up in the coming days as power demand rises further during peak summer. The peak power demand is in the region of 15,500 MW at present, but this is expected to near 16,500 MW in the coming weeks. State energy secretary Sujit Gulati could not be reached for a comment. A government official said on condition of anonymity that they are mulling legal steps against the power producers for failure to comply with the PPAs.
In a recent statement, Adani Group chairman Gautam Adani said that the Mundra power plant has been impacted financially due to under-recovery of fuel costs, and that they continue to be in discussion with key stakeholders to identify a solution.
POWER WOES
- GUVNL is purchasing power from Indian Energy Exchange and other power producers for prices ranging from Rs4.50 - 5 per unit.
- It is paying more than double the power price as compared to the two private players. It is also purchasing costlier power from gas-based power plants of GSECL by shelling out nearly three times the price.
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