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Delhi Electricity Regulatory Commission (DERC) has admitted Tata Power's petition to surrender power and discontinue procurement from the Delhi government's economically unviable gas-based stations.

DERC has issued notices to IPGCL and PPCL, which own the power stations, and asked them to respond to the petition within a fortnight. Tata Power has also asked the regulator to reallocate their power share from these plants to other discoms or states.

Delhi gets power from three central sector power stations-Dadri gas, Auraiya and Anta-and three plants owned by the Delhi government-Pragati power station, Bawana and Gas Turbine power station. The city gets approximately 1,255MW power from gas-based power stations.

The company claims it has made adequate arrangements for meeting the summer demand at much lower rates. It is also assured of meeting any contingencies at a price which, it says, would be much lower than the estimated price from gas-based plants. It gets 237MW from gas-based power stations.

"It is requested that power produced from these plants be reallocated to needy states for 2014-15 by the ministry of power. If reallocation of power from gas stations is not done, it would result in an increase in tariff", read a letter by Tata Power to the government and Centre earlier this month. It further said, "During off-peak/night hours when the demand is low, these stations are run at minimum capacity or not run at all, resulting in discoms paying up fixed costs for these plants".

Source-On Request