BEST to extend 677 MW PPA with Tata Power for the next five years
Deepthi | Myequity news | Date : 02-01-2019 18:45:00 IST
Maharashtra Electricity Regulatory Commission (MERC) has allowed Brihanmumbai Electric Supply and Transport Undertaking (BEST) to extend its existing Power Purchase Agreement (PPA) with The Tata Power Company Ltd. (TPC-G) for 677 MW supplied from its Trombay Thermal and Hydro 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 the BEST consumers in Mumbai, the Hon’ble Commission, in its order on 2nd January 2019, approved the extension. The Hon’ble Commission’s 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 Hydro 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 Mr. 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 & Tata Power is scheduled to expire on 31st March 2019.
This will ensure cheaper power to Mumbai consumers with the added advantage of hydro peaking power at rates which are cheapest in the country. This will also ensure continuity of reliable power supply to Mumbai consumers from embedded Tata Power thermal and hydro generating stations in view of the transmission constraints. About Tata Power:
Tata Power is India’s largest integrated power company and, together with its subsidiaries & jointly controlled entities, has an installed capacity of 10857 MW. A pioneer in the field, it has a presence across the entire power value chain: Generation of renewable as well as conventional power including hydro and thermal energy; transmission & distribution, trading and coal & freight logistics.