Even as the Gujarat High Court orders Central Electrical Authority (CEA) to submit technical report on disallowance of open access by GETCO in central and south Gujarat, industrial units are incurring an average daily loss of Rs 3 crore, amounting to over Rs 100 crore so far.
Around 125 industrial units had been disallowed from buying cheap power in open access from outside Gujarat by Gujarat Energy Transmission Corporation (GETCO). Open access for short-term power purchases had been curtailed temporarily till the load on transmission lines eases. The state's power transmission network is overloaded as consumer demand climbs with the onset of summer.
Depending on the quantum of power consumed, industrial units have incurred daily losses of anywhere between Rs 20 lakh to Rs 5 crore. For instance, according to an official at Surat-based Mohit Industries, the company has been incurring a loss of Rs 1.50 per unit, amounting to about Rs 15-20 lakh depending on its usage.
What's more, in a bid to recover the loss in margins due to rise in power costs, industrial units have also been reducing capacity utilisation at their plants. "We have reduced our capacity utilisation by at least five per cent for now," the official at Mohit Industries stated on condition of anonymity.
The industrial units had individually as well as collectively filed a petition with the Gujarat Electricity Regulatory Commission (GERC) and the Gujarat High Court. Recently the High Court in its order directed the Central Electricity Authority to carry out an investigation and submit a report on or before June 13, 2014.
"At present, the petitioner company is complaining about discrimination by the respondents in performing their duties and, therefore, it is prayed in Para 13(c) of the petition, to hold an inquiry by respondent No.4. However, considering provision of section 73(l) of the Electricity Act,2003, instead of directing respondent No.4- The Gujarat Electricity Regulatory Commission to hold an inquiry, it would be appropriate to direct The Central Electricity Authority constituted u/s.70 of the Act, to carry out an investigation and to hold an inquiry pursuant to facts and details stated in the petition," the Gujarat High Court order stated.
As per the order, "the Central Electricity Authority shall, after verifying the rival contentions, investigate the technical issues regarding constraint in upstream network for short term open access, if any".
According to Dhirendra Doshi, former additional chief engineer (technical and commercial) and power management consultant to some of the unit in South Gujarat, while most of the units have been incurring losses since March 20 when GETCO denied the open access, the number of aggrieved units increased subsequently, leading to a combined loss of around Rs 100 crore till date.
"While some are reeling under the loss and still continuing production, others have reduced their capacity utilisation to some extent to recover the lost margins," said Doshi.
Meanwhile, the 125-odd industrial units are also in the process of forming an association of aggrieved power consumers, Rakesh Choudhary, executive director of the South Gujarat Textile Exporters' Association told Business Standard earlier. Industrial units also said that if required they may also approach other courts to challenge the disallowing of power purchase in open access.
Over the past year, industrial units in Gujarat had begun purchasing power on exchanges, which turns out to be cheaper than buying from state utilities.
As much as 1,500 Mw of power is procured from outside Gujarat, as capacity in excess of 4,000 Mw idles in the state, according to government officials.
