Maharashtra Electricity Regulatory Commission (MERC) has allowed Brihanmumbai Electric Supply & Transport Undertaking (BEST) to extend its existing power purchase agreement with Tata Power Company Ltd for 677 mw, supplied from its Trombay thermal and hydropower plants, for a period of five years — from 1 April 2019 to 31 March 2024.
After the due diligence for ensuring the reliability of supply and cost competitiveness for BEST consumers in Mumbai, MERC, in its order on January 2, 2019, approved the extension. The order came after BEST inter alia submitted that the cheapest option before BEST is the extension of its present PPA with Trombay thermal power station and hydropower plants of Tata Power. BEST and Tata Power have agreed for an extension of PPA with existing terms and conditions
‘Tata Power is committed to supplying the most reliable and competitive power meeting the needs of BEST consumers, as always,” said Praveer Sinha, CEO & Managing Director, Tata Power.
The process of power tie-up was undertaken by BEST in 2017-18 for its discom consumers for the period of next five years starting 1st April 2019. The existing power tie-up of 677 mw between BEST and Tata Power is scheduled to expire on March 31, 2019.
This will ensure cheaper power to Mumbai consumers with the added advantage of hydropower peaking at rates that are cheapest in the country. This will also ensure continuity of reliable power supply to Mumbai consumers from embedded Tata Power thermal and hydropower generating stations in view of the transmission constraints.
Featured photograph is a file picture of Tata Power’s thermal power generating station at Trombay