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HERC tells discoms to manage power prudently

HT Correspondent, Hindustan Times  Chandigarh, June 01, 2014
First Published: 13:10 IST(1/6/2014) | Last Updated: 13:12 IST(1/6/2014)

The Haryana Electricity Regulatory Commission (HERC) urged power utilities to prudently manage the available power in order to optimise power purchase cost on Saturday.

The HERC said that the single largest cost component of the aggregate revenue requirement (ARR) of the two distribution companies (discoms), accounting for more than 80% of the cost of supply, was the cost of power purchased by them from the power generating or trading companies.

The commission observed that while Haryana had a substantial base load and peaking shortages, additional financial burden arose out of expensive short term power purchase or drawl under unscheduled interchange mechanism in low grid frequency regime, which was passed on to consumers as fuel surcharge adjustment (FSA).

However, as surplus power was available to Haryana due to the support of the intrastate generator, Haryana Power Generation Corporation, the importance of load management had become crucial, the HERC said.

The commission added that while discoms were either under-drawing their share of power, several applications, that could have provided nearly 300 MWs, were pending.

Moreover, high tension (HT) consumers were procuring power from outside Haryana on a short-term basis, under open access mechanism as landed cost of such power was cheaper than the grid power, it said.

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