Report of Indian Institute of Public Administration ... - Ministry of Power

Madhya Pradesh
1.7.1 Functions of the MPSEB Transferred to TRADECO
Functions of the MPSEB transferred to the TRADECO are as under:
(a) The bulk purchase and bulk supply functions, namely, purchase of electricity in
bulk from the generating companies and supply of electricity in bulk to the
DISCOMs in the State;
(b) The power purchase agreement (PPA)or arrangement existing between the board
and the generating companies including inter-State joint venture projects and the
bulk supply agreements with the DISCOMs in the State and all arrangements in
relation to trading of electricity, inter state and intra-State;
(c) All short, medium and long-term bulk power purchase agreements (BPAs) or
arrangements between the Board and the power traders existing as on the
effective date;
(d) The bulk power transmission agreement existing between the Board and Power
Grid Corporation of India Limited (PGCIL) as well as other transmission
licensees for transmission and wheeling of power, inter-State or intra-State; and
(e) Any future agreements that are presently being contemplated/ processed by the
Board in respect of any of the above and any activities in regard to electricity
trading in the State.
1.7.2 Arrangements among Different Companies with the TRADECO
The salient features are as under:
(a) TRADECO shall have first charge over entire generation of the GENCO from
the stations and projects listed in the agreement, and shall purchase the entire
power from the GENCO at a tariff to be determined/approved by the MPERC;
(b) TRADECO shall receive power from all other suppliers, viz., Central sector
stations, joint ventures (JVs), inter-State projects, etc., in accordance with the
existing/ongoing power purchase agreements (PPAs) with MPSEB, now stood
transferred to TRADECO;
(c) All the three DISCOMs shall buy power of their requirement from the single
source, i.e., from TRADECO, as per the inter-se bulk supply agreement (BSA)
and at the tariff as determined/approved by the MPERC plus “trading margin”;
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