PRESS NOTE, PATIALA January 13,2019

Er Baldev Singh Sran, CMD PSPCL stated that power demand pattern of the Punjab is very peculiar, from June to Sept demand shoots up to around 12500 MW whereas from Oct to May demand falls to 5500-6000 MW during daytime and during night hours it hovers around 3000-3500 MW. Power rates in Indian Power exchange are higher in summer and lesser in winters. ​The only option to deal with such huge variations in demand is to encourage power consumption in the State and find ways and means to sell the surplus power to other States during winter. In this regard Er.B.S. Sran CMD PSPCL lauded the initiative of Punjab Govt. to introduce industry friendly policies including offering a retail tariff of Rs. 5 per unit to industry and Rs. 1.25/unit rebate on consumption from 10.00 PM to 06.00 AM (next day) during 1​st October to 31​st March. Such measures have yielded good result and 10 % increase in Industrial consumption has been recorded during 2018-19 so far.

Er. Sran said  that during Sept /Oct power rates in exchange remain high @ Rs. 5-8 per unit due to demand outside Punjab and PSPCL saved Rs. 2.42 to Rs. 2.49 per unit by selling 1430 MUs during sept/oct 2018 at average rate of Rs. 5.74 resulting into saving totalling Rs. 350 Crores in these two months only. During winter, due to surplus power throughout the country, the power rates in Power Exchange come down drastically and morning/evening peak time rate is Rs. 4-5/unit and Rs. 2-3/unit during night time.

As per the Power Purchase Agreements (PPAs) signed with IPPs (Private Thermals), NTPC & other Generators, PSPCL is bound to pay fixed charges ranging from Rs 1.00 to Rs. 2.00 per unit during winter/night due to low demand scenario even when no power is drawn from them but energy charges ranging from Rs. 3.10 to Rs. 3.85 per unit are paid for energy actually drawn. ​PSPCL came up with a novel Idea to reduce variable cost of power by stopping/reducing the power drawn from private thermals to the extent possible and substituting it with a very low cost power available in the exchange particularly during night @ Rs. 2.50 to Rs.2.85 per unit to bring down the basket price of its power purchase. Power from state thermals costing @ Rs. 3.85/unit was also replaced with power from exchange @ Rs. 3.30 to Rs. 3.70/unit.

During Nov/Dec 2018, PSPCL purchased 358 MUs from exchange costing Rs. 111 Crores at average rate of Rs. 3.09 per unit resulting into saving of Rs. 19 crores. At the same time 165 MU power worth Rs. 70 crores was sold at average cost of Rs. 4.25/unit during morning/evening peak hours. ​Selling power during peak period and purchasing during lean demand period in highly surplus scenario were unthinkable till recent past but shrewdness in managing resources and scrapping out available margins has helped PSPCL achieve this feat and would translate into lower tariff during coming years by the same amount.

CMD PSPCL also highlighted the fact that to avoid purchasing high cost energy during summer/paddy season, surplus power during winter is banked to get it back during paddy season. ​During this winter season, banking of 1500 MW has already been done till December, 2018 and similar arrangements will be carried till May, 2019 with approximate banked energy around 6000 MUs to MP, J&K, Andhra Pradesh, Chhattisgarh & Himachal Pradesh. This banked power will be returned by these states to Punjab during next paddy & summer season and approx. 2000 MW would be available​​next year from June to September from banking.

Punjab Govt has introduced​ Special tariff for use of electricity exclusively during night i.e. from 10.00 PM to 06.00 AM next day for FY 2018-19 the energy charges are Rs. 4.28/kVAh and fixed charges are 50% of the normal rates of Fixed Charges applicable to the respective category. PSPCL has recommended that 8 hours be extended to 12 hours as per demand of Industry.

Issued by Dy.Secy. Public Relations, PSPCL, Patiala
Press Note no 42, dated January 13,2019