‘PCL unable to explain why it buys costly power from private players’ LUCKNOW:

Though claiming to be a commercial organisation, the UP Power Corporation Ltd (UPPCL) continues with its practice of purchasing expensive electricity from private players instead of going for the cheaper power that is abundantly available with the national energy exchange.

The corporation ends up passing the higher cost on to consumers by way of tariff.

When questioned by the regulator, the corporation is not able to explain the logic.

“We have asked them to submit details on the power purchased by them from various sources in the last nine months, but they are avoiding giving the information,” said a UPERC official.

In its annual revenue requirement (ARR) proposal for the year 2016-17, the UPPCL has projected power purchase to the extent of 125627 million units worth Rs 49848 crore. But the proposed power purchase from the energy exchange comprises only 217 MU.

Sources said that electricity from the energy exchange was available at a rate as low at Rs 2.26 per unit against Rs 5.50 per unit and Rs 6.82 per unit from two private players respectively. “The merit order issued by the UPERC clearly says that the UPPCL will buy electricity from various sources in order of its price. But the corporation was violating the order,” they said.

Uttar Pradesh Rajya Vidyut Upbhokta Parishad president Avadhesh Kumar Verma said he had already challenged the UPPCL’s practice that he said went against the economic principle. “The commission had listed February 24 as the date for hearing the case,” he said, demanding that the UPERC should not allow tariff hike if the UPPCL did not stick to the merit order in purchasing electricity.