Escoms can't buy power at Rs 7 per unit

 
The KERC’s direction has left the power consumers see red. They feel that they have not been taken into consideration, while permitting to procure power at a higher cost.

“It will be passed on to the consumers. How can the commission issue directions without the escoms applying for it ? There is no notice calling the public for objections. What if the power utilities procure power at a cost of Rs 20 per unit,” questions a power expert on condition of anonymity.

S Govindappa, former Technical Member, Karnataka Electricity Board (KEB) says: “Let us hope the escoms will go by books and call for tenders and go for lowest bidding to procure power. But what if the power generators form a cartel and sell power at a higher cost? We wonder why there was no upper limit prescribed to procure power,” he said.

Sreenivasamurthy said the direction was meant to meet the emergency and will be only for the 750 mw of power to be purchased during the month of April and May. 

“The escoms had already called for tenders to procure power. But the KERC in September had fixed a cap of Rs six per unit in September. Following their appeal, we verified that and we permitted them to purchase power at the higher cost. But these tenders which came to us were in excess of six rupees, but within Rs 6.50 per unit. We agreed to it and it will not be indefinite,” he explained.

On the tariff to be passed on to consumer, he said that it will be short term purchase and the burden will not be severe.