WBPDCL To Mine Its Own Coal To Avoid Spot Power Purchase


WBPDCL To Mine Its Own Coal To Avoid Spot Power Purchase

With the day-ahead power market achieving higher volumes (306 million units for Saturday delivery) and prices going haywire (Rs 10.54 at evening peak) on the Indian Energy Exchange, the power ministry has asked state discoms to develop their own mines instead of depending on linked, e-auctions and imported coal. The state discoms’ financial health would be further affected since the gap between the average cost of supply (ACS) and average revenue realised (ARR) is widening. The West Bengal State Electricity Distribution Company Ltd (WBSEDCL) is looking for a tariff hike and this could be true for other state discoms too, a WBSEDCL official said.

West Bengal Power Development Corporation Ltd (WBPDCL) has been failing in giving demand projections because of which the WBSEDCL has been unable to make any medium- or long-term contract with the exchange. “We are absolutely depending on spot power, purchasing at an average `8 per unit. An average increase in tariff by Rs 1-150 would help us adjust the cost of supply. The tariff hike should reflect in the ARR by the end of the fiscal even though it would not affect the average price realised (APR) for now,” the official said. Read more

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