Weekly Power Sector Round up: 28th September 2019

Madhya Pradesh Govt. plans to privatise power to mitigate losses

The MP state government plans to gradually try and implement plans to privatise power in the state. A couple of plans have been presented to the Govt. by private entities; one is a franchise model where the Govt. would outsource the distribution and revenue collection to a private firm and the second is for Private DISCOMs to be allowed to operate in the state.

Concerned officials have indicated that the Govt. proceeding with the franchise model is likelier. Once the model is finalised, tenders would be floated, inviting bids from private players.

Regulator asks Chandigarh UT Electricity department to conduct audit

The Joint Electricity Regulatory Commission (JERC) has directed the UT electricity department to conduct an energy audit of its transmission & distribution (T&D) system.

The department had indicated that the T&D loss for the financial year 2016-17 was 13.65%, while according to the directions of the JERC, it should not be more than 13.25%.

The department had justified the high losses by claiming the non-availability of inter-state transmission point within Chandigarh. The JERC was of the view that intra-state distribution losses of similar urban distribution companies such as Tata Power Mumbai is lower than those of Chandigarh UT and thus, there is significant potential for reduction in losses.

Chandigarh UT extends Solar Installation deadline till the end of March 2020

Chandigarh UT has extended the deadline for installation of solar plants for a fourth time. Senior UT officials approved the proposal to extend the deadline by six months, submitted by the Chandigarh Renewable Energy, Science & Technology Promotion Society (CREST).

The administration, in a notification issued on May 18, 2016, had made installation of rooftop solar power plants mandatory in residential houses measuring 500 square yards and above and group housing societies.

As the initial capital investment was a concern for the residents, UT plans to rope in companies to install Solar plans under the RESCO model, in which the building owners will be charged a tariff payable to the Solar developer.