of electricity at IEX on Wednesday was Rs 2.45 a unit).
For example, the average power procurement of UP Power Corporation ( UPPCL) was Rs 5.94 a unit in 2012-13. Further, one-quarter of power procured by the discom was lost in distribution.
Given that, the state can make a significant savings by allowing open access facility to bulk consumers.
UP is facing peak-hour power shortage to the tune of 2,800 mw. But rather than using the OA facility to cut its operational losses, the state is tying up costly power under long-term contracts.
According to industry sources, UP is considering buying 2,875 mw electricity from generators like Indiabulls, Jindal Power and Lanco at the price range of Rs 6 a unit.
The state has also agreed to buy 2,100 mw power from various companies including KSK Energy, Moserbaer and Navyug in the price range of Rs 5.4-5.8 a unit.