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No power cuts this summer, but you will have to pay more

This is not going to be the proverbial sweltering summer for Mumbaikars with power cuts through the day. Of course, like all good things in life, this added comfort will come at a higher price.

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Shortage will be made up by buying 1,000 MW from other utilities, says BEST

MUMBAI: This is not going to be the proverbial sweltering summer for Mumbaikars with power cuts through the day. Of course, like all good things in life, this added comfort will come at a higher price.

The rates will range from Rs 6- 10 per unit instead of the existing Rs 3-4 per unit beyond a number of units consumed each month. This rule will also apply to commercial establishments.

Additional general manager of BEST (Bombay Electricity Supply & Transport Undertaking) SA Puranik said the high rates are consequent to increased production cost and fuel surcharge.

BEST has geared up to buy over 1000 MW, which works out nearly 100 MW more than the projected deficit this summer. Besides 300 MW from the National Thermal Power Corporation (NTPC), a host of other suppliers including Lanco, Power Trading Corporation and Tata Power have assured 350 MW. Around 15 companies will chip in with over 400 MW during April-May.

“Most of these suppliers are from West Bengal, Kerala, Delhi, Arunachal Pradesh etc,” Puranik said.

The power procurement group (PPG) comprising Reliance Energy, Tata Power and BEST had agreed to buy more than 900MW. Here, PPG negotiates a power deal with external vendors while each company handles the purchasing part on its own.

Every six months, one of the three companies in PMG takes the lead in buying power for the city. “Tata was the first last year, followed by Reliance between Sept 2007 and March 2008, and now it is the turn of BEST,” officials said. BEST will buy power between April and September this year. 

Delays in restarting the Dabhol plant have not helped the cause either. Ratnagiri Gas & Power, the operator of the 2,144 MW project, reportedly shut 33 percent of its capacity this month owing to some technical failure.

The initial shortfall for the state was estimated at 780 MW which later swelled to over 890 MW as per projections barely a week ago. Two years ago, it was only 201MW.
Officials from Reliance Energy, Tata Power and BEST met Maharashtra’s minister for energy, Dilip Walse Patil on Tuesday to discuss the situation and ensure better supplies this summer. The list of new suppliers will ensure that there are no power cuts though the monthly bills could end up getting marginally higher.
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