TN utility buying power from GMR even after expiry of PPA.

The Tamil Nadu Government-owned electricity generation and distribution company continues to buy power from GMR Power Corporation even after the power purchase agreement between the two expired on February 15. GMR Power Corporation runs a 200 MW diesel-fired plant in Chennai.

Neither TANGEDCO, the Government utility, nor GMR Power Corporation responded to an email from Business Line, asking whether the agreement had been renewed, and if not, on what basis the electricity was being purchased.

GMR Power Corporation's diesel/furnace oil fired power engine was set up in 1998. For 2012-13, the State electricity regulatory commission, TNERC approved tariff worked out to Rs. 13.14 per kWh or one unit.

TANGEDCO's average cost of purchase of electricity (including cost of power from its own plants) works out to Rs. 3.55 a unit.

For 2013-14, the Commission allowed TANGEDCO to buy 94.5 crore units from GMR at a variable cost of Rs. 10.41 plus a fixed charge of Rs.147 crore, which works out to Rs. 11.96 a unit.

However, TANGEDCO told the Commission it did not plan to buy any electricity from GMR Power (and three other costly private power producers).

Recently, TANGEDCO bought 3.31 million units from GMR, worth around Rs. 4 crore.

In the first five days of March, the state-owned utility purchased 17.38 million units, worth about Rs. 20 crore, according to data made available by TANGEDCO's sister company, Tamil Nadu Transmission Corporation Ltd.

These purchases exceed TANGEDCO's internal targets — 3.25 million units for Wednesday and 14.67 million units for the first three days of the month.

GMR Power is one of the seven independent power producers in the State.

Three of them - Aban, Penna and ST-CMS - sell power between Rs. 2 and Rs. 3 a unit, while the other four (GMR, Samalpatti, Samayanallur and Pillaiperumalnallur) sell power upwards of Rs. 10 a unit. The difference is because of the fuels used.


HBL