CHENNAI: Going by the numbers, Tamil Nadu Generation and Distribution Corporation’s (Tangedco) spending on power purchases is increasing by nearly Rs 2,000 crore every fiscal. Though the power utility is yet to finalise its balance sheet, sources said, it would have purchased power worth Rs 52,000 crore in the financial year 2022-23.
As per the data accessed by TNIE, the utility’s expenses for power purchases increased from Rs 47,987.89 crore in March 2021 to Rs 49,829.35 crore in 2022. Experts warn that power procurement costs could continue to rise in the upcoming years due to the delay in executing significant power generation projects.
Tamil Nadu Electricity Regulatory Commission’s (TNERC) former member S Nagalsamy said, “The utility’s tendency to shut down its own generation and resort to private purchases has raised concerns. Tangedco has been involved in new-generation projects, including thermal and hydropower, with a combined capacity of 4,620 MW for the last 10 years. However, none of these projects has been completed, leading to the utility relying on private power purchase.”
Nagalsamy said central government-owned power plants retain unallocated power of at least 15%, which they tend to sell at the last moment. Tangedco should explore procuring this electricity, he said.
He pointed out the power load factor currently stands at 60% to 70% in existing thermal plants and highlighted the need to increase it to 80%. The completion timeline for power generation projects should ideally be reduced to 3 to 4 years from the date of commencement, he said.
A retired Tangedco engineer S Neelakandapillai said the utility doesn’t have its own windmill or solar plant. He raised questions about Tangedco’s decisions, particularly highlighting a Rs 4,000 crore expense on private power purchase during the summer.
“At a time when the cost of generating power at a thermal plant is Rs 5 per unit, Tangedco procures electricity at Rs 9 per unit,” he said, adding if corrective measures are not taken, Tangedco might face substantial losses in the future. A senior Tangedco official said they are planning to add a capacity of 6,220 MW to the grid over the next five years, offering hope of gradually reducing private purchases and associated costs.
UT utility makes Rs 188 crore profit, pays Rs 45 crore dividend
Puducherry: Puducherry Power Corporation Limited has paid a dividend of Rs 45.31 crore to the UT government out of its total profit of Rs 187.57 crore (Rs 119 crore after-tax payment), the amount earned since the 32.5 MW gas-based plant at Karaikal began operation on January 3, 2000. The PPCL has also paid a dividend of Rs 5.64 crore for the fiscal 2020-21.
