BEST to finish Tata Power's monopoly and purchase 'inexpensive' 550 MW from other entities.
It's the start of the tip of a 91-year-old association. Tata Power will not have a monopoly over the supply of energy to Brihanmumbai Electric Supply and Transport (BEST) as BEST might be buying 550 MW of its 750 MW requirement from other suppliers.
The BEST, which had floated tenders for its requirement, won bids from Dhariwal Power, Adani Power and state-run energy distribution software Mahavitaran Ltd. The bids are reportedly considerably less than the existing charge being charged by means of Tata Power.
The bids vary between Rs 2.62 per unit to Rs 3.45 per unit. Tata supplies energy to BEST at Rs four per unit. The low charges are expected to help BEST save round Rs 700 crore per annum. Its present annual energy purchase invoice of BEST is round Rs 3200 crore. This will have an important affect on shopper tariff too, which might be reduced by means of Rs 45 paisa to Rs 60 per unit.
The BEST, which provides energy to the island city between Colaba and Sion, Nariman Point and Mahim, has round 10 lakh shoppers.
The island city's general requirement of energy is 750 MW out of which 300 is the bottom load which means that this a lot energy is needed to run the south-end of the city round the clock. And it calls for every other 450 MW all over height hours.
Mumbai's height hours, on the other hand, are reasonably different from the rest of the state. Where in the rest of the state you've morning height hours and evening height hours, Mumbai has daylong height hours starting at 10.00 am and ending at 6.00 pm as, all over these hours, air conditioners are cooling massive office areas.
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While Dhariwal Power and Adani Power will provide a base load of 300 MW, Mahavitaran might be supplying 250 MW all over height hours. Tata Power will proceed to offer 200 MW all over height hours because of transmission hall constraints. Due to insufficient transmission infrastructure, the BEST is not ready to bring in more than 550 MW of energy from out of doors. This constraint is not faced by means of Tata Power, whose energy technology unit is situated at Trombay in Mumbai.
Experts, nevertheless, believe these constraints can be overcome inside of 3 or four years as work on augmentation of energy transmission network is recently underway.
Meanwhile, Tata Power has filed a petition sooner than state energy regulator Maharashtra Electricity Regulatory Commission (MERC) challenging BEST's choice to disqualify it on the pre-qualification degree of bidding from the bidding process. The listening to for this petition might be hung on December 6.
MERC's designated shopper consultant Ashok Pendse said, "The most curious case is of Mahavitaran, which has quoted the figure of Rs 3.45 per unit when its own average power purchase cost is Rs 4.05 per unit. I fail to understand why it is subsidising for Mumbai consumers at the cost of state consumers."
Interestingly, Mahavitaran needed to order load-shedding in the state because of spurt in energy, so if it reveals itself in a an identical scenario again, will it honour its commitment to BEST? Pendse queried.
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It's the start of the tip of a 91-year-old association. Tata Power will not have a monopoly over the supply of energy to Brihanmumbai Electric Supply and Transport (BEST) as BEST might be buying 550 MW of its 750 MW requirement from other suppliers.
The BEST, which had floated tenders for its requirement, won bids from Dhariwal Power, Adani Power and state-run energy distribution software Mahavitaran Ltd. The bids are reportedly considerably less than the existing charge being charged by means of Tata Power.
The bids vary between Rs 2.62 per unit to Rs 3.45 per unit. Tata supplies energy to BEST at Rs four per unit. The low charges are expected to help BEST save round Rs 700 crore per annum. Its present annual energy purchase invoice of BEST is round Rs 3200 crore. This will have an important affect on shopper tariff too, which might be reduced by means of Rs 45 paisa to Rs 60 per unit.
The BEST, which provides energy to the island city between Colaba and Sion, Nariman Point and Mahim, has round 10 lakh shoppers.
The island city's general requirement of energy is 750 MW out of which 300 is the bottom load which means that this a lot energy is needed to run the south-end of the city round the clock. And it calls for every other 450 MW all over height hours.
Mumbai's height hours, on the other hand, are reasonably different from the rest of the state. Where in the rest of the state you've morning height hours and evening height hours, Mumbai has daylong height hours starting at 10.00 am and ending at 6.00 pm as, all over these hours, air conditioners are cooling massive office areas.
Read Also:
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While Dhariwal Power and Adani Power will provide a base load of 300 MW, Mahavitaran might be supplying 250 MW all over height hours. Tata Power will proceed to offer 200 MW all over height hours because of transmission hall constraints. Due to insufficient transmission infrastructure, the BEST is not ready to bring in more than 550 MW of energy from out of doors. This constraint is not faced by means of Tata Power, whose energy technology unit is situated at Trombay in Mumbai.
Experts, nevertheless, believe these constraints can be overcome inside of 3 or four years as work on augmentation of energy transmission network is recently underway.
Meanwhile, Tata Power has filed a petition sooner than state energy regulator Maharashtra Electricity Regulatory Commission (MERC) challenging BEST's choice to disqualify it on the pre-qualification degree of bidding from the bidding process. The listening to for this petition might be hung on December 6.
MERC's designated shopper consultant Ashok Pendse said, "The most curious case is of Mahavitaran, which has quoted the figure of Rs 3.45 per unit when its own average power purchase cost is Rs 4.05 per unit. I fail to understand why it is subsidising for Mumbai consumers at the cost of state consumers."
Interestingly, Mahavitaran needed to order load-shedding in the state because of spurt in energy, so if it reveals itself in a an identical scenario again, will it honour its commitment to BEST? Pendse queried.
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BEST to end Tata Power’s monopoly
![BEST to end Tata Power’s monopoly]()
Reviewed by Kailash
on
December 01, 2017
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