Thursday, December, 02,2021

DNH asks industrial users to pick between power cuts and tariff hike

Silvassa: With domestic coal supplies interrupted by heavy rainfall in coal-producing states and international supplies declining due to heavy buying from China, authorities in the Dadra and Nagar Haveli district have asked consumers to choose between higher tariffs and power cuts.

Rather than taking a unilateral decision, the chief engineer at the Dadra & Nagar Haveli Power Distribution Corporation Ltd (DNHPDCL) has written to the DISCOM’s high-tension consumers, explaining the situation and asking for suggestions on how to move forward.

In the letter, the administration states that short supplies DNH asks...have led to an abnormal increase in the price of power, which currently costs Rs14-16 per kilowatt-hour (kwh) in the open market, where the corporation is procuring power to meet industrial consumer demand.
It further states that the approved power purchase cost is around Rs4.96 per kwh.

The letter also says that procurement of power at such abnormal prices from the open market will result in an abnormal increase in Fuel and Power Purchase Cost Adjustment (FPPCA).

As a result, the corporation has asked industrial units to choose between load shedding or procuring power at the increased FPPCA.  

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