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NTPC stations overpriced, cost of generation more than most states: DERC

The DERC in its letter to the additional chief secretary (power) said the average power purchase cost of Delhi is higher, as compared others due to higher allocation from the costly power plants.  

Published: 17th January 2022 11:29 AM  |   Last Updated: 17th January 2022 11:29 AM   |  A+A-

An image of a NTPC power plant for representational purposes.

An image of a NTPC power plant for representational purposes. (File Photo |EPS)

By Express News Service

NEW DELHI: The Delhi Electricity Regulatory Commission (DERC) has written to the government informing it about the issue of reallocation of surrendered power from NTPC stations, as the cost of generation from them is higher, while the contract is also close to expiry.

The DERC in its letter to the additional chief secretary (power) said the average power purchase cost of Delhi is higher, as compared to others due to higher allocation from the costly power plants.  “It is pertinent to mention that the average power purchase cost of Delhi is higher as compared to many states due to higher allocation from the costly power plants. Delhi has neither coal mines nor hydro potential and is dependent on CPSUs for power supply,” it stated.

It said NTPC gas-based stations like Anta, Auraiya, and Dadri-Gas have higher generation cost and their 25 years period from the date of CoD has already expired in the case of Anta and Auraiya, and will end shortly on 31 March for Dadri-Gas. However, looking at the comparative cost of coal-based stations — NTPC Unchahar-I, Farakka-I&II ­­—which together give 98MW power, it stated that these should continue in Delhi.

“The generation cost of the coal-based plants is comparatively lower than the gas-based plants. Considering the cost in meeting the existing demand, the power allocation to Delhi from these stations will be required to be continued at present,” the letter read. 



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