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Punjab CM gives nod to send PPA repudiation notice to TSPL
Power from TSPL is costing an additional ₹1,800 crore to the state, the CMO said, adding that power rates from other sources were much lower, the CMO has said
Chandigarh After ordering termination of power pact with GVK Goindwal plant, Punjab chief minister Charanjit Singh Channi on Tuesday gave a go ahead to the Punjab State Power Corporation Limited (PSPCL) to immediately issue notice to Talwandi Sabo Power Limited (TSPL) for repudiation of their power purchase agreement (PPA).
The CM said this step had been taken to safeguard the interest of consumers of the state, to reduce the burden of costly power. The average per unit charges (fixed and variable) remained at ₹5.1, ₹5.55 and ₹5.3 during financial years (FY) 18-19; FY 19-20 and FY 20-21, respectively, whereas the average cost of power per unit in the short-term market for these years has been ₹3.86, ₹3.21 and ₹3.01, respectively, a spokesperson of CMO said.
On account of the cost differential between TSPL power and the short-term market power at ₹2 per unit, as per prevailing trends and the units scheduled from TSPL as 9,000 MUs, the additional cost being incurred by the PSPCL per annum, at the present rates, was about ₹1,800 crore, the CMO said, pegging the liability for the remaining period of the PPA at ₹36,000 crore.
“Due to its higher variable rates, TSPL is placed lower down the merit order and as a result, lower quantum of power is scheduled, whereas PSPCL has to pay full capacity charges for the declared availability of the plant,” the CMO added.
Since FY 2014-15 to FY 2020-21, 24,176 MUs of energy has been surrendered, while fixed charges of about ₹2,920 crore have been paid by the PSPCL for such energy. The cost of surrendered power from this plant was ₹389 crore, ₹756 crore and ₹446 crore during FY 18-19, FY 19-20 and FY 20-21, respectively.
