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Highlights:
- On August 26, 2022, Tata Power Company Limited (TPC-D) submitted an application to adopt the 75 MW round trip tariff (RTC).
- Pursuant to the Competitive Bidding Guidelines issued by the Ministry of Power (MOP), Government of India (GOI), dated March 30, 2016, Tata Power is looking to temporarily purchase electricity in October 2022.
On August 26, 2022, Tata Power Company Limited (TPC-D) submitted an application to adopt the 75 MW round trip tariff (RTC). Pursuant to the Competitive Bidding Guidelines issued by the Ministry of Power (MOP), Government of India (GOI), dated March 30, 2016, Tata Power is looking to temporarily purchase electricity in October 2022.
Under Section 94 (2) of the EA, 2003, Tata Energy Distribution Company Limited also filed Interlocutory Application (IA) No. 22 of 2022, dated 26 August 2022, seeking an immediate hearing on the subject.
TPC-D is requesting authorization for short-term power purchases to meet the demand in the petition. They stated in the petition that, by rule 22 of the 2019 Multi-Tax Regulations, distribution licensees may receive more electricity throughout the year in addition to the electricity procurement strategy for the control period authorized by MERC.
They added that the rate discovered through competitive bidding, which is Rs 7.54 per unit, is higher than the rate considered in the MYT order, which is Rs 3.56 which allows for short-term purchases.
The price discovered through competitive bidding for short-term energy procurement for October 2022 is higher than the rate allowed by the commission in the tariff order of TPC-MYT D, according to the brief of the petition provided by TPC-D in the e-hearing. which was held on September 13, 2022.
In response, the committee asked TPC-D to explain why the offer to buy electricity covers only October 2022, as opposed to the extension of the auction from July 15, 2022 to June 30, 2023 placed on the DEEP portal. In addition, they questioned the TPC-handling D of the requirements from July 2022 to September 2022.
Also, whether bids will be accepted for future purchases or whether TPC-D will issue new bids for the same. The committee also asked the TPC-D to clarify that the green shoe option has been made for both the bidders.
As these issues were not covered by the petition, the committee directed the Tata Power Distribution Company Limited to provide further representations about them within three days.
On June 26, 2022, TPC-D issued a single auction for the purchase of short-term electricity for the period from July 15, 2022 to June 30, 2023, with different quantities each month depending on expected shortages.
Different prices and quantities are offered by the auctioneer every month. Except for October 2022, TPC-D did not issue any award to interested bidders during the period from July 2022 to June 2023 because the rate found in the reverse auction was higher than the market rate.
If additional power is required during this period, Tata Power Distributors Ltd. is committed to purchasing it through short-term power purchase options, such as power swaps.
The average cost of short-term electricity purchase for July 2022 and August 2022 is Rs. 5.07 baht per unit and Rs. 5.63 per unit, respectively. These costs are less than the costs specified through the process of Competitive price (Rs. 9.09/kWh for August 2022). Because of this, although the auction is for a longer period, TPC-D has only contacted the committee for the needs of October 2022 to reduce the cost of purchasing electricity.
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