Updated on: Monday, January 10, 2022, 09:15 PM IST

Mumbai: Power distributing companies to get additional blanket to draw excess electricity at nominal rates in case of faults or outage

Since October 2021, there is a provision made where a common pool of 20,000 Mw has been made.
Representative Image |

Representative Image |


Mumbai never sees a power cut but then in extraordinary situations in case of emergency power plant outages or shutdown; power fluctuations do take place especially during summer season. However for the first time in years, one might have to not worry about these power fluctuations owing to unscheduled demand for electricity, as there is an additional blanket being provided to power distributing companies.

Since October 2021, there is a provision made where a common pool of 20,000 Mw has been made. After the preliminary workings done until December, the power distribution companies’ claim that the system of open pool will enable them to draw excess electricity at nominal rates of Rs 3.5-4 per unit in case of any unscheduled rise in demand comes in owing to faults or outage in power plants.

According to industry sources, there has been an ancillary service in place wherein power exchange pool has been created. This can be used by power distributing companies of Maharashtra Electricity Distribution Company Limited (MSEDCL), Tata Power, Adani Electricity Mumbai Limited (AEML) and Brihanmumbai Electricity Supply and Transport (BEST).

“This pool of electricity usually has a band up to 20000 Mw which these distribution companies can withdraw from and pay nominal tariffs not above Rs 4 per unit or so that has been well defined. In the last three months, the working has been smooth and power distribution companies have used from this pool of power in case there in a planned or unscheduled outage of a power plant that primarily sources supply to these distribution companies through MoUs,” explained industry experts.

This will certainly come in handy during summer or month of October when temperatures soar. Usually in summers, Mumbai’s demand touches 3500Mw or so while the supply is mere 1800Mw which includes 1300Mw or so from Tata Power Trombay power plants and 500Mw from AEML’s Dahanu plants.

Meanwhile, independent power experts claim that if this pool system is so efficient then why the power distribution companies don’t curtail their power purchase from open markets. These power distributing companies buy the remaining balance at open market rates from power exchanges that touches Rs 6-8 per unit as well if demand is more and keep fluctuating. In fact last year when there was an issue of coal shortage, the prices in power exchanges had touched a whooping Rs 15 per unit as well.

Now, with help of this pool, in case there is an outage in the power plant and whatever shortfall arises, Mumbai will get that electricity at nominal rates from this pool. This is apart from the regular process of buying electricity on ‘day-ahead’ basis where probable demand is informed prior, ‘intraday’ buying where shortfall is bought on the same day at market prevailing rates from energy exchange and even make arrangements for summer months in advance.

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Published on: Monday, January 10, 2022, 09:15 PM IST