Huge increase in per unit variable cost in Mahagenco TPS

Huge increase in per unit variable cost in Mahagenco TPS
Huge increase in per unit variable cost in Mahagenco TPS

Nagpur: There is huge rise in variable cost at Koradi TPS unit 8 to 10 i.e. from 2.525 Rs/KWhr to 3.390 Rs/KWHr which comes out to be 0.865 Rs/KWHr i.e. 34.26%. Same is increased for Khaperkheda unit 1- 4 by 27.12%, Khaperkheda U5 by 20.2%, according to sources.

The sources said that this price is increased hugely at Koradi, Khaparkheda, Chandrapur, Bhusawal, Nasik where supply and use of imported coal, washed coal and RcR coal is in place. Whereas at Parli and Paras TPS only raw coal by rail mode is supplied and used hence variable cost is decreased at Paras and at Parli it has very slightly increased.

Landed cost of imported coal, wash coal and RcR coal is very huge as compared to raw coal by rail mode which reflects in per unit variable cost. This increase in cost is directly transferred to electricity consumers. People of Maharashtra state are being directly affected by this increase in cost. Consumers will see the difference in increased FAC in electricity bills next month, sources added.

According to sources, Mahagenco is also not getting benefits from use of this costlier coal. All parameters such as GCV difference, SPCC (Coal factor), Heat rate, specific oil consumption, and auxiliary power consumption have been increased drastically in FY 2022-23. This proves Mahagenco is not benefited from use of these costlier coal whereas there is loss of about Rs 1700 crore due to fuel cost disallowance as parameters are beyond the permissible limits imposed by MERC. Further, stock at TPS of Mahagenco has also not been increased.

This clearly proves that variable cost has been increased due to use of costlier imported coal, washed coal, RcR coal rather than raw coal by rail mode. And people of Maharashtra have to bear this increased cost in their electricity bills.

Loss to Mahagenco and people of Maharashtra given below:

Comparison of last year and this year for Mahagenco.

1) Landed cost of coal for Mahagenco:

2021-22. 3587 Rs/MT
2022-23. 4374 Rs/MT

Landed cost increased by 787 Rs/MT i.e. 22% up.

2) Per unit variable cost for overall Mahagenco

2021-22. 2.777 Rs/KWHr
2022-23. 3.272 Rs/KWHr

Per unit variable cost increased by 0.495 Rs/KWHr i.e. 18% up.

3) ARB and Bunker GCV difference (stack loss)

Allowed by MERC 120Kcal/Kg 2022-23

Koradi 8-10. 654

Koradi 6. 371

Chandrapur 3-7. 309

Chandrapur 8-9. 286

Khaperkheda 1-4. 261

Khaperkheda 5. 607

Bhusawal 4-5. 609

Bhusawal 3. 559

Paras. 356

Nasik. 120

Parli 6 7. 106

Parli 8. 117

This GCV difference is on very higher side as compared to 120 limit from MERC, especially at Koradi, Bhusawal, Khaperkheda, Chandrapur where there is supply of Imported, wash and RcR is done. ARB GCV is increased on paper in favour of contractors. But actual received GCV reflects in bunker GCV hence this difference increased.

4) Specific Heat rate of overall Mahagenco 2022-23

Allowed by MERC for Mahagenco is 2460Kcal/KWHr
Actual is 2878Kcal/KWHr which has caused Rs. 958 crore loss to Mahagenco.

5) Auxiliary power consumption for Mahagenco

Allowed by MERC for Mahagenco 7.56%
Actual at Mahagenco 8.66% causing loss of Rs.78 crore.

6) Specific Oil Consumption for Mahagenco

Allowed by MERC 0.75 ml/KWHr
Actual at Mahagenco 2.47 ml/KWHr causing Rs. 188 crore loss.

Total loss due to fuel cost disallowance is Rs 1214 crore.

7) Loss due to less % availability i.e. Fixed charge disallowance is Rs. 549 crore.

Total loss in 2022-23 due to fixed cost and fuel cost disallowance is Rs 1763 crore.