NUMM demands probe into payment of Rs 6,626 cr by power companies to other power generating utilities

Source: The Hitavada      Date: 13 Feb 2018 11:36:03

Staff Reporter

Members of Nagrik Upbhokta Margdarshak Manch (NUMM) raised demands towards Madhya Pradesh State Electricity Regulatory Commission for inquiry into payment of Rs 6,626 crores by power companies to other power generating utilities without purchasing a single unit of electricity in last three years.

The matter came in light when power companies submitted their annual revenue requirement (ARR) reports before the regulatory commission. According to the documents of power selling and purchasing presented with the report, power companies have mentioned the payment of Rs. 870 crores for not purchasing 7,099 million units in year 2014 – 15, payment of Rs. 2,158 crores for not purchasing 17,130 million units in year 2015 – 16 and payment of Rs. 3,598 crores for not purchasing 28,379 million units in year 2016 – 17. Power companies could not purchase total 52,608 million units of electricity but paid Rs. 6,626 crores to different power generating units.

NUMM’s Dr P G Najpande informed that power companied had signed a large number of power purchase agreements against surplus electricity availability in the state but failed in purchasing electricity. Power companies have paid fixed charge according to PPA amounting in thousands of crores.
NUMM’s Rajat Bhargava, Manish Sharma, Anil Pachori, Dr. MA Khan, Rammilan Sharma have charged the power companies for signing PPAs without considering the fact of surplus electricity availability and raised demand towards regulatory commission for inquiry into the matter.