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Punjab State Power Corporation Limited (PSPCL) over paid Rs 2,249.6 crore for costly power purchases through traders, unscheduled interchanges and underutilization of power from own thermal plants, the Comptroller Auditors General (CAG) today said in its report.
The auditor highlighted costly power purchase by the PSPCL from Everest Power Private Limited (EPPL) resulting in excess payment of Rs 181.2 crore. The Power Sale Agreement was signed between PTC India, EPPL and PSPCL for 100MW for a period of 40 years. The auditor said that the PSPCL overlooked the capped tariff recommended by Punjab State Regulatory Commission and made an excess payment of Rs 181.2 crore as it failed to incorporate the amendments recommended in Power Sale Agreement signed on March 2006.
“Also, the PSPCL failed to raise liquidation damages worth Rs 77.52 crore for delay of two-years and 10 months in Commercial Operation Date by EPPL,” said the CAG report released to media by the Principal Accountant General Punjab (Audit) Harbans Singh.
Despite the fact that the Power Purchase Agreement (PPA) included the clause that EEPL would pay liquidated damages in case of delay in COD of more than six-months, the demand for liquidation was not made, the report said.
To meet the peak season demand, the company purchased power through short term agreements (bilateral agreement and through power exchange) ranging from one day to one year. PSPCL made over-drawls in 21 months during 2013-14 to 2015-16 out of which the over drawls were costlier for 16 months than variable cost of own generation or short term power purchase.
During the period between April 2013 to March 2016, PSPCL made unscheduled interchange over-drawls instead of own generation or short-term power purchase resulting in higher expenditure of Rs 191.7 crore.
The Punjab State Electricity Regulatory Commission (PSERC) disallowed unviable commercial power purchase through traders and unscheduled interchange worth Rs Rs 439 crore for 2010-12, Rs 23.5 core for 2011-12, Rs 22 crore for 2012-13 and Rs 3.8 crore for 2013-14.
For under utilization of the state owned thermal plants, the PSPCL had to pay Rs 260.4 crore as disincentive penalty slapped by the PSERC for 2010-11 and 2011-12 respectively.
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