JOIN USCivic body seeks new power deal
The New Delhi Municipal Council is planning to write to the Union Power Ministry to allow it to purchase less electricty during the winter months and save money.
Currently, the council purchases around the same amount of electricity throughout the year as per its agreement with the Delhi Transco Limited (DTL).
With the usage varying widely during summer and winter, the NDMC now wants
flexibility.
“We will write to the Power Ministry for changes in the agreement. We will pitch for two distribution slots — one from October-April and the other from March-September. This will ensure that the NDMC doesn’t run into losses of crores,” said Kumar Hrishikesh, financial advisor, NDMC.
The NDMC made a loss of Rs 150 crore last year by selling off surplus power at rates lower that at what it had bought it. The NDMC was last year pulled up by the Union Home Ministry for incurring huge losses in the electricity department.
In summer, the council purchases around 380 MW of electricity every day. But the usage is less than this, said officials.
The usage during winter is around 150 MW every day. Even though the council purchases less than 300 MW during winter, the surplus amount is significant.
Besides, the NDMC has to maintain a surplus of 30 MW every day to provide uninterrupted supply to the VVIP zone. This amount also is not fully utilised, said officials.
However, the bone of contention lies in the fact that the NDMC is compelled to sell off the surplus electricity at a rate much lower than at what it procures.
Currently, the NDMC has to purchase and sell off electricity at fixed rates in compliance with the guidelines issued by the Delhi Electricity Regulatory Commission (DERC).
As there is likely to be no flexibility in the rates at which the NDMC can sell off the surplus electricity, it is seeking a revision in the agreement on buying power.
The issue will be taken up with the Power Ministry in April, said NDMC chairperson Jalaj Shrivastava.
“We had earlier taken it up with Ministry of Home Affairs but it did not yield much results,” said Shrivastava.