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AIPEF demands review of long term power purchase agreement
V K Gupta | 20 Mar 2017

All India Power Engineers Federation (AIPEF) has demanded the review and re-opening of existing power purchase agreements (PPAs) between state power utilities and independent power producers (IPPs) and discussion on amended draft Electricity Bill with power engineers and employees before discussion in parliament.

The executive committee meeting of Federation was held on Saturday at New Delhi to discuss the present power scenario of the country. The executive was addressed by Padamjit Singh Chief Patron, Shaliender Dubey Chairman, and Rathnakar Rao Secretary General. K Ashok Rao and representatives of regional Federations and state constituents.

Padamjit Singh said that in the long term power purchase agreements should be reviewed particularly the condition off take or pay for capacity charges are removed.  IPPs should be  free to sell the power in market instead of charging fix charges from State Discoms without generating or supplying a single unit of electricity as per deemed generation clause.

The Punjab Power Generation Policy of 2010 was supposed to be on the model of Gujarat policy of 2009. 

However while the Gujarat policy contained several safeguards regarding right of refusal and allowing power utilities to surrender unwanted power without paying for capacity charges, the Punjab policy was heavily twisted in favour of IPPs while safeguards for state power utility were removed. Since the Punjab Policy is "in force until further orders'' and   this policy can be withdrawn at any time by government.