Chennai: The Tamil Nadu Power Distribution Corporation Limited (TNPDCL) is facing criticism from opposition leaders for buying electricity from the open market at rates of up to Rs 37 per unit, the highest ever in its history.
The controversy has raised questions over the Tamilaga Vettri Kazhagam (TVK) government’s power procurement strategy, particularly after cancelling the tenders finalised at rates ranging from Rs 11 to Rs 20 per unit during the previous administration.
The Dravida Munnetra Kazhagam (DMK) and other opposition parties have questioned the government on whether the state anticipated the seasonal demand increase adequately and initiated procurement early enough to secure more competitive prices.
TNPDCL has floated tenders to procure 4,500 MW of electricity from the open market to bridge the gap between supply and demand. The department has finalised arrangements for 1,500 MW of round-the-clock power supply from 12 to 31 October at Rs 31.99– Rs 34.49 per unit. A further 2,000 MW is to be procured to meet the evening demand surge between 6 pm and midnight at Rs 33.37-Rs 37 per unit.
The comparison with Andhra Pradesh has become a central point of criticism for the Vijay-led TVK government.
The Andhra Pradesh Power Coordination Committee finalised bids for 150 MW for the same period at Rs 16–Rs 20 per unit on 9 September, while Tamil Nadu invited bids only in the week preceding the October supply period.
TNPDCL officials and Electricity Minister C.T.R.Nirmal Kumar attributed the high rates to the availability of gas-based power plants rather than conventional coal-based plants.
Kumar also pointed to a shortfall of nearly 4,000 MW from central generating stations due to scheduled annual maintenance, reduced wind power generation and unusually high demand.
Responding to criticism over the procurement decision, the electricity minister maintained that electricity demand has risen significantly, putting additional pressure on the state’s power supply system.
Power demand, he said, has increased by 30 percent, from last year’s 16,800 MW to 21,700 MW on the back of the surge in power consumption in October.
But, the opposition leaders have questioned why Tamil Nadu did not initiate procurement earlier to obtain lower rates. They have also demanded that the government disclose the relevant tender documents, bid comparisons, supply schedules and details of electricity available from different sources.
Opposition leader and former chief minister M.K.Stalin criticised the government for allegedly failing to act despite repeated warnings about power cuts. He questioned the decision to cancel lower-priced contracts signed during the previous DMK government and procure electricity at what he described as unprecedented rates.
“All opposition parties have also been warning about power cuts for the past many months. They should have woken up then and taken the necessary steps. While the electricity minister points to other states, the Chief Minister has flown off to London,” he questioned.
“Now, at the last minute, they are knocking on doors and supposedly going to buy from the open market at Rs 35 per unit. Cancelling the low-price contracts signed during the previous DMK rule and buying at the highest price that no other state in India has ever paid so far, is this the change they have brought?”
The power demand remains high in October and the government faces pressure to explain the procurement decision, and demonstrate that the expensive arrangements will translate into more reliable electricity supply for consumers.
BJP leader Narayana Tirupathy strongly criticised the electricity minister over what he described as inconsistent explanations about the shortfall in central power supplies.
“Last week, he (Kumar) claimed that the Centre was not supplying 3,000–4,000 MW from the Central Grid and today he quietly lowered the figure to 1,800 MW from NLC and without ever releasing station-wise allocation, schedule or actual data to substantiate any of these claims,” the BJP leader said.
“This shifting and unproven excuse is now being used to justify purchasing power at a record Rs 31–Rs 37 per unit for peak hours until the end of October. Evening demand peaks are entirely predictable. Paying three to five times the normal short-term rate is the direct consequence of his department’s failure to secure power in advance.”
Another BJP leader Vinoj P.Selvam also questioned the circumstances surrounding the procurement, raising concerns about accountability and the possibility of irregularities. He asked the Tamil Nadu government whether the shortage had been allowed to develop to justify purchasing electricity at such high rates.
(Edited by Tony Rai)