27 September 2011 |Merinews
Generating costs of BBMB power houses may be jacked up

V K Gupta

The suo-motu decision by CERC to take Bhakra Beas Management Board under its jurisdiction may jack up the generating costs of hydro station many folds. 0 0

CENTRAL ELECTRICITY Regulatory Commission (CERC), in its recent order, has directed BBMB to make appropriate applications for approval of tariff for its generating stations and transmission system.

Share CERC in a suo-motu petition has decided that BBMB is a generating company owned or controlled by the central government, and is also involved in inter-state transmission of electricity. Accordingly, regulation and determination of tariff for generation and inter-state transmission of electricity by BBMB are vested in the Central Commission.

BBMB has an installed capacity of 2804.73 MW from the Bhakra-Nangal and Beas Project and has a transmission network of 3735 Km of 400 KV, 220 KV, 132 KV and 66 KV transmission lines for supply of power to the States of Punjab, Rajasthan, Haryana, Himachal Pradesh, Delhi and Union Territory of Chandigarh. At present, partner state power utilities get their tariff approvals from state electricity regulatory commissions. Their share of power from BBMB power houses and payments made to BBMB towards its expenditures are duly shown in their annual revenue requirements before regulatory commission.

Partner states get power from BBMB’s power houses at about 30 paise per unit as per actual cost. A senior power engineer said that in case tariff for generating units and transmission lines is going to be decided by CERC the tariff would be jacked up many folds. A senior official connected with power sector said that interpretation of CERC is a central government project like DVC is not based on facts. The generation stations and allied transmission lines are the joint property of concerned partner states and BBMB is only managing states assets on their behalf. The central government provides no fund for BBMB as it does for DVC

Another power official said that they will challenge the decision within mandatory 60 days and consult other partner states. He further said that the CERC's own orders dated September 11 2206 and order no. 116/2005 clearly stated that generation stations under BBMB are intra state power houses.