Delhi govt issues directions to DERC on policy for power generation

New Delhi, Aug 7 (UNI) The Delhi government today evolved a policy on power generation for Delhi beyond 2012 wherein the distribution companies, or Distcoms, will be mandated to make their own arrangements to generate power in or around Delhi.

Accordingly, the Delhi Government's department of Power has issued directions to Delhi Electricity Regulatory Commission to ensure that distribution companies make their own arrangements for supply of power to meet Delhi's growing power needs by making effective projections and put in place necessary mechanism for doing so.

It has also directed DERC to take up with the distribution companies the issue of tying up with other generating companies to meet Delhi's future power needs and ensure that the peak demand is also met along with the normal demand.

''The onus of arranging the power and its proper distribution is with the discoms. We have asked the DERC, the regulatory authority to see the demand of power is met by making suitable arrangements by the discoms. Routinely resorting to load shedding is not an option to bridge the demand supply gap,''Principal Secretary (Power) in the Delhi Government Rakesh Mehta said.

The DERC has also been asked to put in place an effective mechanism for promoting energy conservation and energy efficiency measures. The Delhi government said the DERC should make the distribution companies responsible to play a proactive role in promoting energy conservation and energy efficiency, by making such measures as part of their tariff orders wherever considered feasible.

The need for evolving a policy on power generation for the future for Delhi beyond 2012 and thereafter was necessitated since the establishment of power plants can take upto seven years due to detailed procedure involved.

Since April 1 this year, the distribution companies have started buying power on their own rather than depending on the power purchase by Delhi Transco Limited as it is not authorised to purchase power being a transmission company.

Accordingly, the Delhi Power Procurement Group, consisting of the distribution companies, is doing daily sale and purchase of power to meet the requirement of their license areas.

After Delhi becomes surplus in power in the next few years, the DPPG will be wound up if it is found to be superfluous by the distribution companies.

The Distribution Companies can buy power from other generating companies including merchant power plants, which are being encouraged by the Centre. They can also establish their own power plants in or around Delhi or far away from Delhi and transmit it to their licensed areas. The Distribution Companies would make their own forecasts about the power requirements and load growth in their areas. Under the Electricity Act, 2003, they can also make the arrangements to generate power.

UNI