Electricity bills may go up amid purchase of Thermal Power by J&K Govt.
The recent 500 MW thermal power purchase agreement is poised to impact electricity bills, potentially causing a rise in tariffs. H Rajesh Prasad, Principal Secretary of the Power Development Department (PDD), revealed that the tariff might increase by one rupee per unit compared to the current hydro power rates. In a discussion with Wattan Daily, Prasad explained that the process to integrate the newly acquired 500 MW thermal power into the system would commence shortly.
Despite the predominant reliance on hydropower, Prasad highlighted a significant shift towards diversification, citing a 1600 MW solar power purchase agreement. However, he acknowledged the limitations of solar energy, specifically its variability during sunny and dull days. Thermal electricity generation, derived from coal or gas, was emphasized for its consistency throughout the year, ensuring a 24-hour power supply.
Regarding the 500 MW thermal power agreement, Prasad clarified that the government had granted approval, anticipating the supply to be operational in the coming days. He discussed the tariff aspect, noting that the base rate for thermal power would likely surpass that of hydro and solar power. While hydro electricity costs around Rs-4.50 paisa per unit, thermal electricity might see an increase of nearly one rupee per unit, ranging from Rs-5.25 paisa to Rs-5.50 paisa. Despite the expected increase, Prasad deemed it a reasonable rate, emphasizing the necessity of this base load for support.
Acknowledging the complexity of power procurement, Prasad mentioned ongoing purchases from the power exchange, likening its volatility to the share market. He assured that the PDD department had robust power purchase agreements in place to manage the base load effectively. Despite the government’s approval for the 500 MW thermal power purchase, Prasad highlighted the need for additional procedures through the central electricity authority to finalize and approve the pricing, a process expected to conclude within 2-3 days.
