The Central Electricity Regulatory Commission (CERC) plans to place a proposal on reduction of unscheduled interchange price from Rs 10 to Rs 7.35 for a unit of power by the end of this month in an effort to reduce spot price.
Speaking on the sidelines of an interactive seminar organised by Merchants Chamber of Commerce Pramod Deo, chairman, CERC said , “There is a proposal to reduce the UI rate to Rs 7.35 a unit, which will be implemented from April 1, and one of the chief reasons for this move would be to bring down the spot price”.
Unscheduled Interchange (UI) is the difference between the actual generation and the scheduled generation from a power project for a particular period of time.
This apart CERC would be examining a plan for restriction on unscheduled withdrawal of power, which might be fixed at 10-15 percent of schedules demand, Deo hinted.
“If it happens then the power withdrawal from any grid would be stopped as soon as the frequency of the grid drops to 49.3 hertz (Hz),a power utility has to begin loadshedding as soon as the frequency touches 49.3 to prevent collapse of the grid.” he said.
At present it happens after the frequency drops at 49 Hz.
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The CERC would also be considering for the first time the concept of a no load shedding tariff for customers who are willing to pay more for zero power cuts.
“Loadshedding free tariff is possible but that would require substantial investment in equipments dedicated feeders for uninterrupted supply of power,” said De.
Spot price had touched a high of Rs 13 a unit.
"One of the reasons to reduce the UI charge is to bring down the spot power price," he added.
CERC wanted power drawal to be stopped as soon as the frequency dropped to 49.3Hz instead of 49Hz as practised now.
A utility has to begin loadshedding as soon the frequency touched 49.3Hz to prevent collapse of the grid.
Deo said after the elections the government should encourage competition in generation and transmission sector. On being asked about the proposal for a tariff cap, Deo said it is not possible as cost of power of different generating units are not same and varies widely across the country.