KOCHI: Though the state government initially favoured power purchase from GNA Energy, the authorities decided to hold the decision considering regulatory issues, according to sources. As GNA Energy offered 500 MW round-the-clock power at Rs 8.645 per unit, the State Electricity Regulatory Commission may not okay the proposal as the state has excess power during daytime. Besides, top officials at KSEB say GNA Energy does not possess licence for power trading.
The All India Power Discom Association had approached the Central Electricity Regulatory Commission in August complaining against violation of norms by Over the Counter (OTC) platforms like New Age Markets in Electricity Pvt Ltd and GNA Energy.
The guidelines do not authorise OTC platforms to operate bidding, matching, auction, clearing or settlement mechanisms similar to power traders or exchanges. However, these two platforms allegedly entered into short term power purchase deals with Rajasthan, Gujarat and Manipur. The Discom Association has demanded a regulatory audit and compliance review of the OTC platforms. It is alleged that GNA Energy approached the government directly hiding the fact it lacked power trading licence.
Power situation manageable
A senior KSEB official said the situation is manageable now as power consumption has declined due to intermittent rain. Peak hour demand hovers around 4,800 MW and the state is able to bridge the gap of 600 MW by purchasing power from the Day Ahead Market and Real Time Market.
Power availability has improved in Central Grid with the arrival of winter in North India. Besides, the Centre has asked power generators to ensure availability of maximum power till November 15 in view of Diwali. Thermal stations have stepped up generation as the coal reserve, which had hit critical level, has improved.
“We expected a peak hour demand of 5,270 MW on Sunday, but the demand was only 4460 MW. Though we were expecting increased demand in North India due to El Nino threat, winter has arrived there and the cool climate may continue till January. In December, we will have to return 260 MW power bought from Madhya Pradesh under Swap Arrangement for 15 days. We may face a crisis from February to April as summer peaks. We hare holding discussions with Punjab to purchase 500 MW power under Swap agreement,” said an official.
While the ruling front targets M G Rajamanickam for favouring purchase of power from Himachal Pradesh, sources said the note submitted by him was discussed and approved by the core team of KSEB which includes directors, chief engineers of commercial, generation and system operations and deputy chief engineer (planning).
BJP QUESTIONS TENDER BYPASS IN GNA DEAL
T’Puram: After the LDF, the BJP has now targeted the government over alleged irregularities in the state’s proposed power purchase deal with GNA Energy OTC, alleging that the arrangement could impose an additional financial burden of nearly J1,500 crore on the state. BJP national executive member and MLA V Muraleedharan questioned how the private firm was selected without inviting tenders and why the government sidelined the Himachal Pradesh government’s offer for power supply.”
Chief Minister V D Satheesan should explain whether other private agencies had approached the government with offers and, if so, why their proposals were not considered,” he asked. He also questioned the terms of the proposed GNA arrangement, which covers the period from November 2026 to March 2027.He alleged that the deal required the state to purchase power even for periods when it was not needed.