Industries in the South are paying high prices to purchase power from country’s energy exchanges due to a huge demand-supply gap and congestion in the Grid.

The limitation of the Grid to supply power from the North and the East, where there is extra power, to South is constrained. This is leading to higher rates to States such as Andhra Pradesh and Karnataka, according to exchanges.

While the average price per unit is about Rs 4-5 in North, it is hovering at about Rs 7-7.5 per unit in South, with instances of purchase price spiking up to Rs 13-14 in Andhra Pradesh. Occasionally, this was as high as Rs 18 in March.

Mr Rajesh K. Mendiratta, Senior Vice-President of Indian Energy Exchange, said, “Prices have gone up to Rs 11-17 during peak times in South. While the requirement is more than 1,000 MW, the availability is less. Those who do not have DG sets are forced to buy when they need power.”

“This situation is unlikely to change till 2014 when the transmission lines are strengthened between North and South and East and South,” Mr M.N. Ravishankar, Director of NETS, the energy trading arm of Lanco Infratech, said.

He said prices have shot up lately as the power cut on industries has increased. There is no sign of fresh supplies. If the reservoirs get full and hydel power generation goes up, situation may improve. “In fact, during February-March this year, it had shot up to Rs 18 per unit,” he said.

Mr V. Gurmukh of Power Exchange India Ltd, said, “Peak time prices in South are quoting high due to local demand and inadequate supply.

Mr Devendra Surana, President of Fapcci, said, “Industries have been allowed open access and they are buying power depending upon their requirement and availability”.

>vrishi@thehindu.co.in

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