Discom BSES plans new ways to reduce power-shopping costs | delhi | Hindustan Times
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Discom BSES plans new ways to reduce power-shopping costs

delhi Updated: Nov 16, 2009 23:48 IST
Avishek G. Dastidar
Avishek G. Dastidar
Hindustan Times
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After being criticised for not buying enough power at during the crisis this summer, discom BSES is finally coming up with ways to reduce its power-shopping cost and maximise power purchase.

Discoms routinely sell their surplus power to other states and utilities for profit. Discom BSES Rajdhani — serving 70 per cent of Delhi —now wants to sell surplus power even before actually bringing the power to Delhi.

It will enter into agreements with other utilities to buy its surplus power right from the generating stations — thereby saving on the cost of wheeling the power and cutting down on transmission losses as well. Discoms generally lose a certain amount of power in transmission.

The Delhi Power Purchase Group (DPPG) — a body of officials from government, transmission and distribution utilities in the Capital overseeing power procurement processes — approved this scheme on Friday.

“This will cut down on the cost of power procurement by about 7 per cent,” said Gopal Saxena, CEO of BRPL.

“We will forecast the demand pattern as accurately as possible so that non-peak hours in Delhi can be correctly anticipated,” he added.

Every bit of cost savings by discoms in power procurement is good news for consumers. Every year, discoms pressure the Delhi Electricity Regulatory Commission (DERC) for a tariff hike citing rising cost of operations.

Increased power purchase cost forms the backbone of their demand.

Delhi Power Secretary Rajendra Kumar said a dip in power purchase cost would mean better cross subsidising for times when discoms buy power at steep rates.

“It is an innovative way of power banking, which minimises losses and increases profits,” he said.

The matter has now reached the Delhi Electricity Regulatory Commission (DERC) for a formal nod. According to the DERC, the discom had shied away from buying enough power on a day-ahead basis at a time when the city reeled under eight to 10 hours of power cuts in June this year.