Public Private Partnership in Generation of Electricity Model Power Supply Agreement (DBFOO)

Abstract

Access to uninterrupted supply of electricity at competitive prices is one of the essential attributes of a modem economy. This requires creation of a market where producers can supply at competitive prices to meet the demand from time to time. However, the current market structure requires the distribution utilities to fulfill the supply obligations to the all consumers in their respective license areas until the legislative mandate for introduction of open access takes effect. For this purpose, the distribution utilities need to enter into long-term agreements with producers for setting up power stations and dedicating the agreed capacity for supply to such utilities over the term of the agreement.