Around 10.5 lakh electricity consumers of the Brihanmumbai Electric Supply and Transport (BEST) across Mumbai should not worry about power shortages despite a rise in demand, especially during October. The Maharashtra Electricity Regulatory Commission has approved BEST’s short-term power procurement for the period from August 2022 to December 2022 with an average tariff of Rs 7.72 per unit discovered through competitive bidding. In a petition seeking approval for the short-term procurement of power BEST had argued that “after lifting of restrictions on account of Covid-19, the rising economic activities will increase the electricity demand. Considering this, and the period of August 2022 to December 2022, BEST’s demand is likely to increase.’’
The company had invited an e-tender for bilateral power purchase of 50 MW to 150 MW at different time slots (00:00 to 24:00 hrs round-the-clock (RTC), 10:00 to 18:00 hrs and 10:00 to19:00 hrs) from August 2022 to December 2022 on Discovery Of Efficient Electricity Price (DEEP) portal on June 27 this year.
BEST’s peak demand in the current financial year was 890 MW in April 2022 and its anticipated demand at day peak time will be approximately 861 MW during the ensuing period. As per its long/medium power purchase agreement (PPA), the ex-bus availability of its peak availability is 763 MW. Similarly, a provisional transmission loss of 3.18 per cent is considered for the year 2022. Accordingly, the estimated peak power demand projection is considered for August 2022 to December 2022.
In its justification for short-term power procurement, BEST has submitted that it has an allocation of 90 MW from Tata Power’s Unit-7 (180 MW) gas-based generating unit. In recent years, due to change in priority for the power sector, the allocation of APM gas Tata Power’s Trombay Units from GAIL has considerably reduced. This has resulted in a lower generation from TPC’s Unit-7.
“It is anticipated that the trend of lower generation from Unit- 7 may prevail in the ensuing period due to lower availability of APM gas and therefore, the anticipated shortfall to BEST will be up to 40 MW. Tata Power’s Hydro resource is limited and is required to be used in the evening and night when the rates of the power exchange are on the higher side. Thus, during day peak, availability of hydro is low,’’ said BEST. It further added, “Considering the volatility in the short-term power market, particularly during high demand season and as experienced during the month of April and May, 2022, it is necessary to tie-up bilateral contracts to ensure reliability to meet the anticipated demand in ensuing period.’’
MERC has ruled that as the average tariff of Rs 7.72 per unit is discovered through competitive bidding in the present process, the same shall act as ceiling tariff for procuring short-term power through competitive bidding process for FY 2022-23. Any tariff discovered below such ceiling shall be considered as deemed adopted as per provisions of competitive bidding guidelines notified by the Central government for short-term power procurement.
