Centre warns states not to sell unallocated power

New Delhi: In a veiled threat, the Centre has warned states of snapping their share of unallocated power if the same is not being used to meeting needs of consumers but being sold on power exchanges at higher rates for gains.

Prime Minister's Office (PMO) reviewed the coal supply and power generation scenario as the government looks at ways to defuse the energy crisis being faced by several states.

The Union Power Ministry directive has come in the wake of several states reporting shortage of power due to a sudden rise in demand but at the same time selling a portion of power available to them at exchanges to maximise gains as prices have shot up to Rs 15 for a unit of electricity.

Several states including Tamil Nadu, Punjab, Delhi, Rajasthan, Assam, Madhya Pradesh are reporting severe stress on their power situation in the wake of fuel shortages at coal based plants while an unprecedented increase in power demand in the post pandemic rapid recovery being seen in the economic activities. A power ministry statement said that it has been brought to its notice that some States are not supplying power to their consumers and imposing load shedding. At the same time, they are also selling power in the power exchange at high prices. The fresh action on unallocated power is to prevent misuse of this portion of energy.

As per the guidelines for allocation of power, 15 per cent power from the Central Generating Stations (CGS) are kept under "unallocated power" which is allocated by the Central Government to the needy States to meet the requirement.

Keeping in view the Declared Capacity (DC) offered to the Delhi DISCOMs in last 10 days, Ministry of power has issued instructions on NTPC and DVC to secure power supply to Delhi.

This will ensure that distribution companies of Delhi will get as much as power as requisitioned by them as per their demand.

The central power utilities, NTPC and DVC have been directed to offer the normative declared capacity (DC) to the Delhi DISCOMS as per their allocations made to them under respective Power Purchase Agreements PPAs, from their coal based power stations. Both NTPC and DVC have committed to provide as much electricity to Delhi as demanded by DISCOMs of Delhi.