Key day for city

Will the Brihanmumbai Electric Supply and Transport (BEST) undertaking get 800 MW from its sole supplier Tata Power Company? Will the Maharashtra Electricity Regulatory Commission (MERC) approve the power purchase agreement (PPA) between the two utilities, thereby leaving Reliance Energy Limited the only option of either signing a PPA with TPC for the available 500 MW or look out for other sources?

These and some other questions are crucial for Mumbaikars, as depending on the decision power availability as well as tariff structures would change.

TPC is a bulk supplier with a total capacity of 1,777 MW. BEST, which is retail licensee supplying electricity to island city, gets 800 MW from TPC. REL, retail licensee supplying electricity to consumers from the suburbs, generates 500 MW. REL has a demand of 719 MW, which is supplied by TPC.

For a long-term relationship between TPC and REL, the latter has to enter into a PPA with TPC. However, as TPC can supply 500 MW, REL refused to sign an agreement. BEST currently renews its pact with TPC on a monthly basis whereas a PPA would be a long-term arrangement. “However, despite an agreement in place, BEST pays over Rs five crore for purchasing power from outside sources,” he said.