MoP Issues Amendments to Short Term Power Procurement Guidelines


The Ministry of Power has issued the amendments to the guidelines for short term procurement of power (i.e. for a period of more than one day to one year) by Distribution Licensees through Tariff based bidding process.


The central government had notified the guidelines for short term procurement of power on 30th March 2016, further there was amendments to the said guidelines and were notified on 30th December 2016.


These guidelines have further amended to address the issue of sale of power by Generators in the market without the consent of procurer.


A new clause is added to the existing guidelines, which says that in case the seller fails to offer the contracted power as per the agreement to the procurer and sells this power without procurers consent to any other party, the procurer shall be entitled to claim damages from the seller for an amount equal to the higher of that is twice the tariff and the entire sale revenue accrued from third parties on account of sale of this contracted power. These damages shall be in addition to liquidated damages, for failure to supply the instructed capacity.

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Also, on a complaint by the procurer to the state load dispatch centre (SLDC) the seller will be debarred from selling power on power exchanges and scheduling of power in any short / medium /long term contracts for three months from the establishment of default.

The period of debarment will be increase to six months for second default and shall be one year for each successive default.

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