05 January,2009 06:20 AM IST | | Shashank Rao
Power companies purchased power at a much cheaper rate because of the economic slowdown and this will reflect in your bills post March
There's little to cheer with the burden of the economic slowdown weighing upon us. But, there's good news coming your way soon. After March, there will be a drastic reduction in your electricity bill, as power companies purchased electricity at a much cheaper rate in winter than otherwise.
Usually during winter, the Power Procurement Group (PPG), formed by Tata Power, BEST and Reliance Infrastructure Ltd to buy costly power from other states, purchases electricity at Rs 8-9 per unit.
However, last winter, Tata Power which purchases power on behalf of the other two power distributors bought it at Rs 6 per unit. The costliest purchase by the Power Procurement Group was in March 2008 at the rate of Rs 13 per unit for Mumbai.
A senior official from Tata Power said, "The rates offered by other states have gone down due to the financial crunch."
Ashok Pendse, energy expert, said, "The economic slump has surely brought down the purchase prices for these companies. But, it will be clear in February whether the winter chill or the financial crisis was responsible for the falling prices."
States like Andhra Pradesh and some northeastern states have been struggling to sell power, as several industries especially steel and metal manufacturing units in the industrial belt of Maharashtra have remained sparsely functional. These industries reduced the working hours and increased the holidays of the staff to control the cost.
Such measures helped Tata Power obtain electricity at a cheaper rate despite an increase in demand by 200 Mw in December. The rates for power during the evening, when the demand is at its all-time high, has also fallen from Rs 10 per unit to Rs 7 per unit.
PPG in 2007
The three power suppliers to Mumbai Tata Power, BEST and Reliance Infrastructure Ltd formed the Power Procurement Group (PPG) in 2007. One of the three companies heads the group for three months and buys electricity from other states whenever necessary.
Base price for PPG Rs 8.53 per unit
In 2007-08 rate of purchase Rs 11 per unit
Average demand in Mumbai during winter 1800 MW
Average demand in Mumbai during summer 2600 MW
