Chennai: To bridge Tamil Nadu’s power demand, the state power utility has signed contracts to procure electricity at prices reaching Rs 37 per unit, a record-high rate, according to officials.
The utility said generation from its own stations is currently insufficient, forcing it to rely on purchases from central government plants and private suppliers.
Based on a tender floated last week, power will be procured from October 13 to October 31. Contracts have been finalised with five companies for round-the-clock supply, with rates ranging from Rs 31.99 to Rs 34.49 per unit.
For the evening peak window from 6 pm to 12 midnight, the tender sought 3,000 MW but received offers for 2,001 MW. This power is to be bought at Rs 33.37 to Rs 37 per unit, marking the first time such high prices have been contracted.
An official attributed the spike to coal shortages, saying the tender did not attract coal-based power and that gas-based power would be procured instead. The official added that due to the high cost, the contracted power would be drawn only when necessary.
