In an interview with Vishav, CEO and Managing Director of Tata Power Delhi Distribution limited (TPDDl) Praveer Sinha talks about the challenges faced by power discoms in Delhi and steps taken by TPDDl to ensure consistent supply, among other issues facing power discoms.
What are the main challenges facing power discoms in near futureIJ
* One of the main challenges and a continuing one for discoms is the non-availability of cost reflective tariffs and creation of large regulatory assets which hampers its liquidity position. Timely and cost reflective tariff alongwith pass through of power purchase cost adjustment needs to be done in an objective and fair manner to ensure better customer services. The second challenge is development of a transmission system (both locally and interstate) to ensure that the discoms are able to supply round the clock power to its consumers, including contingency planning. In my view, the transmission system has failed to keep pace with the generation and distribution requirements and at many times this burden is passed on to the consumers and utilities through power breakdown and DSM charges.
What about the power generation companiesIJ
* There is a need to usher transparency in pricing in generation sector by addressing issues of grade slippage of coal which has major impact on the cost of power procurement of discoms. Many a times, it is observed that the grade/ GCV of coal which has been despatched and billed is much higher than the actual coal received and fired in a power plant. This leads to higher tariff being charged with Discoms and the consumers due to large slippage in grade of coal- nearly 5-10 grades.
What are your expectations from the tariff revision process this yearIJ
* We expect a cost reflective tariff along with provisions for amortisation of Regulatory Assets for TPDDl, which has created a liquidity stress on the organisation. We also expect the Commission to give effect to the judgments of Appellate Tribunal for Electricity (APTEl), wherein some of the earlier decisions/ tariff orders of the Commission has been set aside by them.
There has been a lot of talk going on regarding discoms not having done enough to upgrade infrastructure. What are your thoughts on the sameIJ
On May 20 this year, TPDDl Served a peak load of 1,779MW without any interruption. This is possible only because of infrastructure up gradation and best Maintenance Practices adopted by TPDDl. In FY 2015-16, to address the vertical load Growth at Sub-transmission level TPDDl increased its Power Transformer capacity by 241MVA by commissioning 2 no’s New Grids in North Delhi area(125MVA), addition of 5 no’s of New PTR (107 MVA)and Augmentation of 1 no. PTR (9MVA). As of April-2016, we have a Power Transformer capacity of 3,963 MVA and Distribution Transformer Capacity of 5,086 MVA. At Distribution level, TPDDl enhanced the Network capacity by 663KM through addition of 18 no’s of HT feeder (113.29kM) and 1150 no’s of lT feeder (550.13kM).To provide N-1 at the 11kV level, 150 no’s of New RMU were commissioned to facilitate for easy changeover in case of failure of one source. At Technology Front, TPDDl had implemented first of its Kind SCADA, DMS,OMS, DA,SAP, unmanned Grid and Integrated 24x7 call center for the ease of Power distribution.
Then where do you think lies the problemIJ
* We have been facing an acute problem of unrestricted and unplanned growth due to development of many new colonies which have been regularised by the Government. Due to lack of necessary infrastructure in these areas, narrow lanes, construction of 4-5 story residential buildings, etc, resulting in space constraint to upgrade the infrastructure. Our performance is also affected by external damages of our poles, Transformers, Switchgear and cables/ conductors due to accident by vehicles or by civic agencies during development work. Despite the above we maintain reliable and quality power supply to the consumer.