The Gujarat Urja Vikas Nigam Limited (GUVNL) paid a staggering Rs900 per month as fixed cost to power producers in the last two years, the state government revealed in the assembly on Thursday.
The Gujarat Urja Vikas Nigam Limited (GUVNL) paid a staggering Rs900 per month as fixed cost to power producers in the last two years, the state government revealed in the assembly on Thursday.
Between February 2016 and January 2017, the fixed cost paid to power producers was Rs920 crore per month, and Rs905 crore between February 2017 to January 2018. The money was paid to the power producers, including private players and government owned plants, even if no electricity was purchased from them.
“The fixed cost was paid by GUVNL as a part of the long-term power purchase agreements signed with different power producers,” state energy minister said in a written reply in the House.
The fixed cost has to be paid to power producers based on the Availability Based Tariff as decided by Gujarat Electricity Regulatory Commission (GERC), he said.
“The power purchase agreements are signed keeping in mind the maximum demand of electricity. When demand is lower, generation is reduced or stopped at plants which supply electricity at a higher rate. However, as a part of the agreement, and to ensure power availability at all times, the payment of fixed cost is justified,” the reply added.
Power generation up 7 per cent
The generation of electricity in the state rose by almost 7% in 2017 over the previous year. The state government said in the assembly that from 81,041 Million Units (MUs) in 2016, power generation rose to 86,570 MUs in 2017. Generation by state and central government owned power plants rose from 42,948 MUs to 47,456 MUs. Generation by private power producers declined from 31,805 MUs to 27,884 MUs, while those from renewable energy sources went up from 5,995 MUs to 7,975 MUs.
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