New Delhi Power bills can come down if Power Buyers are allowed to buy from Producers
In New Delhi, if bulk buyers are allowed to purchase electricity directly from producers and negotiate rates with distribution companies the power bills can come down. However the state and regulators are pressuring the industry officials said. The Indian Institute of Technology, Delhi, in one of the study has proved that the distribution companies exclude a portion of their large consumers and the profit gained is only 10% . These benefits paves way for the substantial reduction in tariff for retail consumers. The report says distribution licensees purchase expensive power from energy portfolio.
The customers are negotiating with power producers, distribution utilities should aim for lesser electricity from the market due to reducing demand and consequent rise in the prices. Delhi Electricity Regulatory Commission chairperson PD Sudhakar reported saying that the system adopted by the large customers was inappropriate in terms of power deficit and also fear for higher tariffs on the utilities would fix tariffs. These provisions may work in conditions of power surplus scenarios. Time for the provision to come into force is unfavorable experts say.
Source: The Economic Times
Tags:
Bulk buyers, Delhi, Delhi Electricity Regulatory Commission, Delhi NCR, electricity, Indian Institute of Technology, Power producers
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