APERC fate hangs in balance

• AP announces constitution of new commission
• TS already issued notification for separate ERC
• AP Reorganisation Act says APERC will be a joint regulatory body for two States for six months from June 2

Hyderabad: The Andhra Pradesh Electricity Regulatory Commission (APERC) that was constituted in the undivided Andhra Pradesh is in a state of chaos and confusion. The AP State Reorganisation Act- 2014 says that the APERC shall function as joint regulatory body for a period not exceeding six months within which time separate ERCs would commence functioning in both the States.

The Reorganisation Act says that all the regulations, rules, orders, proceedings, guidelines and memos issued for the conduct of business and other matters will apply to the whole of the States of Telangana and Andhra Pradesh. It also says amendments notified from time to time immediately before June 2 by the Commission will be fully applicable to the two States.

Despite specific provision in the AP State Reorganisation ACT, both the TS and AP governments have chosen to constitute their respective Commissions.

The APERC claims that it still has four months time before it has to wind up but in the meantime both the States have issued GOs constituting their own ERCs. The TS government had even issued notification inviting applications for appointment of the chairman and members of the TSERC (Telangana State Electricity Regulatory Commission). The AP government is likely to issue the notification soon. Both the State ERCs were refusing to accept the orders of the original APERC.

It is against the backdrop of this situation, the AP government on Tuesday refused to accept the decision of the original APERC saying that the government cannot reject the PPAs unilaterally even if they were not accepted by them. This has pushed the Commission into a state of confusion which is now exploring options on how to deal with the situation.