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CERC asks Power Min to make changes in bidding documents

Last Updated: Monday, October 29, 2012 - 20:22

New Delhi: Power sector regulator CERC has asked the Power Ministry to make necessary changes in bidding documents for upcoming power plants in order to address issues faced by distribution companies.

In a letter to Power Ministry, Central Electricity Regulatory Commission (CERC) has said,"The document needs refinement to adequately address various issues around competitive procurement of power by the distribution licensees."

The commission is of the view that the Standard Bidding Document or SBD should be designed based on Build, Own, Operate (BOO) model instead of Design, Build, Finance, Operate and Transfer (DBFOT) as it is the case right now.

DBFOT or Public, Private, Partnership model in power generation, is premised on the assumption that the distribution licensee will be a public entity and generator will be a private entity.

"This may not be a correct assumption as we have private distribution licensees in the country," CERC said.

CERC also said that the provision of independent engineer should be dispensed with. Ideally both the contracting parties should be jointly involved to undertake measurement and monitoring of project.

"In the draft document the concept of independent engineer has been introduced at various stages of the project," it said.

It added that the provision of appointment of an independent engineer by the utility with such elaborate roles and functions of overseeing technical parameters of the plant would tantamount to creating an independent authority not envisaged under the Electricity Act, 2003.

The commission is of the view that this kind of arrangement may lead to dispute and should be dispensed with.


First Published: Monday, October 29, 2012 - 20:22
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