Petition for Approval of procurement of power by Distribution Licensees to ensure availability of sufficient power during the summer season of draft Power Purchase Agreement – EQ
Summary:
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**1. Parties Involved**
– **Petitioner:** Tata Power Delhi Distribution Ltd. (TPDD) – a joint venture of Tata Power Company Ltd. (51%) and Government of NCT Delhi.
– **Regulator:** Delhi Electricity Regulatory Commission (DERC).
– **Coram:** Sh. Ram Naresh Singh, Member; Sh. Surender Babbar, Member.
**2. Petition Reference & Date**
– **Petition No.:** 60/2025
– **Order Date:** 28.01.2026
– **Subject:** Approval for short-term power procurement via competitive bidding for summer 2026.
**3. Objective of Petition**
TPDD sought DERC’s approval for:
1. Procurement of short-term power (up to 650 MW) through **Tariff-Based Competitive Bidding (TBCB)** as per MoP Guidelines.
2. Adoption of discovered tariff.
3. Approval of draft Power Purchase Agreement (PPA).
**4. Background & Justification**
– **Anticipated Shortage:** Summer 2026 (16 April – September) expected shortage up to 650 MW.
– **Past Demand:** Delhi’s peak demand reached 8442 MW in June 2025.
– **Regulatory Mandate:** License conditions require economical, transparent power procurement.
– **Resource Adequacy:** Guidelines mandate mix of long/medium/short-term contracts for reliable supply.
**5. Procurement Process Conducted by TPDD**
– **RfP Issued:** 10.10.2025 via DEEP portal for up to 650 MW (RTC + Peak).
– **Bidders Participated:** 12 bidders including PTC India, NTPC Vidyut Vyapar Nigam, JSW Power Trading, etc.
– **Reverse Auction Held:** Tariffs discovered through e-RA.
– **Conditional LoAs Issued:** 10.11.2025 to shortlisted bidders.
**6. Key Quantitative Details**
– **Total Quantum Approved:**
– RTC Power: **679.20 MU** at weighted average rate of **₹5.37/kWh**.
– Peak Hour Power: **101.85 MU** at weighted average rate of **₹9.47/kWh** (capped at ₹10/kWh).
– **Period:** 16 April 2026 – September 2026.
– **Peak Rate Justification:** Market prices capped at ₹10/kWh by CERC; alternative sources cost ~₹9.203/kWh.
**7. Commission’s Analysis & Conditions**
– **Tariff Capping:** Peak hour tariff capped at **₹10/kWh** in line with CERC orders.
– **Approval Granted:** For procurement as per discovered rates.
– **Critical Conditions Imposed:**
1. **No Cost Pass-Through:** If procurement fails, TPDD bears additional costs; not to be passed in FY 2026-27 true-up.
2. **Surplus Power Sharing:** Any surplus must be offered to other Delhi DISCOMs via Inter-DISCOM Transfer mechanism first.
3. **Risk on TPDD:** Sole responsibility for supply at discovered tariffs.
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