MERC Scrutinizes MSEDCL's 6,600 MW Power Procurement Tender

MERC has scrutinized and raised questions over MSEDCL's 6,600 MW power procurement tender, asking why the approval was not sought earlier and whether the proposed deviations benefit consumers. MSEDCL must respond to these queries within seven days, with the next hearing set for July 2, 2024.

The Maharashtra Electricity Regulatory Commission (MERC) has raised significant concerns regarding the Maharashtra State Electricity Distribution Company Ltd's (MSEDCL) tender for procuring 6,600 MW of power. In a recent order dated June 25, the state power regulator questioned MSEDCL for not seeking approval prior to initiating the procurement process.

The MSEDCL's tender, which aims to procure 1,600 MW of thermal power and 5,000 MW of solar power, was issued in March just before the Lok Sabha election model code of conduct came into effect. MERC has asked MSEDCL to show how these deviations in bidding documents would benefit consumers.

MSEDCL has been directed to address the potential issues of stranded capacity and justify the rationale for combined power procurement from a single entity. Furthermore, MERC insists on ensuring sufficient participation time for fair competition. The company has seven days to respond with the next hearing set for July 2, 2024.