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In order to offer relief to cash-starved state power distribution companies, Ministry of Power on Thursday put in place new guidelines to procure electricity for shorter duration of up to a year.
The new guidelines are targeted to reduce the power purchase bill of distribution utilities through a process of planned procurement. It would also provide benefit to consumers because state distribution utilities prefer cutting down of electricity supply than buying expensive power during peak demand cycles.
From now on, state distribution utilities can call for bids on round the clock basis for different time slots based on requirement. The bidders would have to quote single tariff at the delivery point that would include capacity charge, energy charge and any other levies.
The bidder may also be asked to deposit earnest money of Rs 30,000 per megawatt every month in the form of bank guarantee. The bidder may raise bills on weekly or at the end of contract cycle.
In case, the state distribution company could not pick up the contracted units of electricity by more than 15 per cent, it will have to pay compensation at 20 per cent of tariff per kWh for the quantum of shortfall. Similarly, the seller would also have to pay for any shortfall in supplies from its end.
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