Centre cautions against sale of ‘unallocated’ power

The directive came from the Ministry of Power following reports that some states are selling their surplus power in energy exchanges at higher prices.

Published: 13th October 2021 10:55 AM  |   Last Updated: 13th October 2021 10:55 AM   |  A+A-


For representational purposes

Express News Service

BHUBANESWAR: Even as several states of the country are grappling with a power crisis due to low generating capacity of thermal plants for want of coal, the Centre has warned of snapping the share of unallocated power of those states that sell electricity at higher rates through energy exchanges for profit instead of sparing it to meet the demand of those that need it. 

The directive came from the Ministry of Power following reports that some states are selling their surplus power in energy exchanges at higher prices.

”It has been brought to the notice of Ministry of Power that some states are not supplying power to their consumers and imposing load shedding. At the same time, they are also selling power in the power exchange at high price,” said the Power Ministry. 

In case it is found that a State is not serving its consumers and selling power in power exchanges at higher rate, the unallocated power of such State shall be withdrawn and allocated to other needy states, it added.

“In case of surplus power, the states have been requested to intimate to the Government of India so that such power can be reallocated to other needy states,” the Ministry said.

Though Odisha is comfortably placed as far as demand-supply of power is concerned, it is is not in a position to share surplus electricity to needy states after surrendering allocated power from Central generating stations at Barh, Farakka and Kehelgaon. 

“The State has no problem on the power front as all its thermal generating stations are pit-head based and are getting normal supply of coal. The hydro power stations are the major support during peak demand,” said Gridco Managing Director Trilochan Panda.

The commissioning of 2X800 MW Darlipali Super Thermal Power Station in Sundargarh district from September 1, 2021 has also eased the power situation in Odisha. The State is entitled to receive 50 per cent of the power generated by the Darlipali power station, he added. 

The Central Generating Stations are scheduled on a day-ahead basis. Usually, generating stations offering cheaper power are fully scheduled by states. In case the State does not wish to utilise the power, the power remains un-requisitioned and unsold. 

As per the guidelines for allocation of power, 15 per cent power from the Central Generating Stations (CGS) are kept under ‘unallocated power’ which is allocated by the Central government to the needy States to meet the requirement of consumers.


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