New Delhi: Central Power Regulator has enabled Power Yamuna BS / BES Rajdhani Power to get out of the 25-year-old PPA (Power Purchase Agreement) with the NTPC Dadri Station managed by NTPC, a step that will help keep electricity tariffs for 45 Lakh Capital consumers Served by two discounts (distribution companies).
BBS Yamuna has a 62 MW allocation and BES Rajdhani 560 MW from the Dadri Stage unit at around Rs 6 per unit, abundant supply is currently available on the exchange at a price of half.
The verdict will allow discounts to replace expensive energy with cheaper supply, especially from renewable sources to fulfill regulatory obligations to buy green power.
This will help reduce tariffs for consumers and the burden of subsidies for the Delhi government.
The verdict about the petition by BSKS, the Central Electricity Regulatory Commission (CERC) on Thursday said the electricity norms gave the right to get out of PPAS after the power station concerned completed 25 years of commercial operation, considered as a full life cycle of plants.
Delhi tariff regulator also recommends to the Ministry of Power to allocate the BSKA supply quota from Dadri Station so that they can buy electricity cheaper than renewable sources available on the electrical exchange.
Discounts stopped the demand power, called ‘scheduling’ in industrial language, from the capacity of Dadri-i allocated after completing 25 years of operation on November 30, 2020 and tried to end the PPA.
But NTPC disagrees, forcing a discount to move the Cerc.
The BBS case reflects a sustainable transition in the market of power, where the supply increase from renewable sources put downward pressure on the tariff and extort demand for expensive power from coal-fueled plants.