Continuous power supply to Mumbai in the post-monsoon peak season may once again come under a cloud in view of the recent order issued by the Maharashtra Electricity Regulatory Commission.
MERC, in its August 16 order, has reiterated that the Maharashtra State Electricity Dis-tribution Company is under 'no obligation' to supply additional power to Tata Power Company to meet Mumbai's shortfall. Under the 1964 licensing agreement, Tata Power can draw 'standby power' from the state grid during forced outages or plant shut-downs.
However, Mahadiscom has accused the utility of overdrawing from the grid to meet the shortage from growing demand in the city. In March 2006, MERC had ruled that TPC cannot draw excess power from state grid in order to supply to the city, especially keeping in view shortage faced by the state discom.
Mahadiscom is expecting a shortfall of 4,500 Mw this year, up from last year's 3,500 Mw. TPC had petitioned for a review of the order which now stands rejected.
Tata Power feeds discoms in Mumbai, including Reliance Energy and BEST, and has a shortfall of 150 Mw. This year the shortfall is likely to go up by an additional 100 Mw. It is in this light that the commission order assumes significance.
Tata Power has already announced that it is setting up a 100 Mw DG set sourced from China to meet contingencies in its Mumbai license area and has already received approval from the regulator. But it may still need to source another 150 Mw in the coming months starting January 2007 as power consumption in the city is expected to rise.
According to sources, the company may consider using its internal resources, such as the newly commissioned 2,300 Mw plant at Jojobera in Chhattisgarh, to supply power to Mumbai. The other option under consideration is buying power from Jindal Power in Orissa. Jindal and other traders also supplied power to TPC last year.
To meet the demand in the long term, TPC has commissioned two 250 Mw plants at Trombay and announced another 2,000 Mw coastal plant in the state using imported coal.
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