Rs 1,944 cr spent to buy power

Mumbai power utilities have dished out approximately Rs 1,944 crore this season to procure 2,700 million units of power from external sources.

The three utilities that serve Mumbai "" Tata Power Company (TPC), Reliance Energy Limited (REL) and Brihanmumbai Electric Supply and Transport Undertaking (BEST) "" have bought expensive power at the rate of Rs 7.20 per unit to overcome the shortage of 400 megawatts Mumbai has faced this summer, said REL Executive Director, Lalit Jalan.

This has put an additional burden of approximately Rs 1,100 crore on Mumbai's consumers who otherwise pay for cheaper power bought from TPC at rupees three per unit. Almost 80 per cent of the amount billed to consumers is actually cost of power.

Jalan explained that Mumbai consumers already pay 40 paise extra per unit as guarantee for 'reliable power' provided on a stand-by basis by the Mumbai State Electricity Distribution Company Limited (MSEDCL).

This amount increases to 80 paise if expensive power is taken into consideration, and to a total of rupees two per unit if cost of power generated within the state through expensive liquid fuel is added to the bill, Jalan explained.

Therefore, with the addition of coal-based or gas-based power plants, consumers would be charged upto Rs 2 per unit less for power.

However, to tide over the perceived shortage of 400 Mw this summers, the power utilities have already tied-up for 250 Mw of firm supply and another 350 Mw of infirm power.

The infirm sources are expected to take care of the balance shortfall of 150 Mw.

Jalan informed that power from external sources have already been tied up till August this year.

The utilities have also tied-up 200 MW for the months of September, October and November. However, they are looking at getting another 250 Mw for this period.

The chances of Mumbai suffering load shedding, therefore, has been reduced to almost nil.

However, to prevent such crisis in future, power plants should be developed in the state and approvals for the same should also be granted on a priority basis, Jalan said.