Madhya Pradesh: Demand grows for audit of discoms by CAG | bhopal | Hindustan Times
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Madhya Pradesh: Demand grows for audit of discoms by CAG

bhopal Updated: Mar 20, 2015 23:34 IST
HT Correspondent
HT Correspondent
Hindustan Times
power distribution companies

To discourage state-run power distribution companies (discoms) from spending on heads other than the requisite ones, a farmer body has asked the Madhya Pradesh government to get the accounts audited by the Comptroller and Auditor General (CAG) from now on.

Bharat Krishak Samaj, a non-political farmers’ organisation, has urged the MP Electricity Regulatory Authority (MPERC) to get the accounts of three discoms audited from the CAG.

Bharat Krishak Samaj’s coordinator and farmer Raj Narayan Bharadwaj asked on Thursday: “When the Delhi government has ordered the private power firms to get their accounts audited by the CAG, why can’t the MP government do this for its own companies?”

The farmers’ body is concerned about discoms passing on the burden of fixed charges and variable charges paid to private firms under the power purchase agreements (PPAs) onto the customers.

Expressing similar sentiments, MP Vidyut Mandal Abhiyanta Sangh (MPVMAS) also blamed the short sightedness of discoms for agreeing to pay fixed charges to private firms in the PPA.

"The long-term PPAs were signed between the state-run power companies and the private firms after a suggestion from an international firm to the state government that the power demand may shoot up to around 14,000 megawatts after 2011," MPVMAS general secretary VKS Parihar said.

"The demand projection went wrong as the survey was done by the international firm which failed to assess the future demand accurately," he said.

In the 2014-15 tariff petition, the fixed charges to be paid to the private power firms under the PPAs was Rs 7,000 crore while in the 2015-16 tariff proposal, the amount is assessed to Rs 11,000 crore and the same is to be recovered from the consumers.