Gridco to pay Rs 55 crore a month for surrendered power
With power consumption coming down due to the lockdown, the Gridco would be forced to pay at least Rs 55 crore per month towards Fixed Cost Liability of surrendered power to the generating plants.
Prior to the lockdown, the daily demand of power was 3,300 MW while it has gone down to 2,700 MW now due to shutdown of industries and market complexes.
The Gridco has signed Power Purchase Agreements (PPAs) with generating companies and the PPAs come in two parts: Fixed Cost and Variable Cost. As the Gridco is not utilising the power and surrendering it, the company would be absolved of Variable Cost. But it has to pay the Fixed Cost of installing power project which includes repayment obligations to lenders.
