Discoms to submit 2 sets of tariff hike

AP awaits Centre's decision on PPAs

Hyderabad: With the deadlock on power purchase agreements (PPAs) yet to be resolved between AP and Telangana, the power distribution companies (Discoms have decided to submit two sets of annual revenue requirements (ARRs), which include power tariff hike proposals, to the AP Electricity Regulatory Commission (APERC). They are likely to submit the ARRs in January first week.

Top officials in the Energy Department told The Hans India that this decision was arrived at a recent meeting the power utilities had with Chief Minister N Chandrababu Naidu.

The deadline set by the APERC will expire on December 30, but the Discoms have sought extension of the deadline by a week time in view of the delay in the finalisation of the tariff hike. The officials, who have prepared the ARR keeping in view scrapping of the PPAs by the State government, are now taking no chances and sought additional time to prepare another set of ARR taking the PPAs into consideration.

While the first report will comprise details of demand and availability of power supply from the entire thermal and hydel generation plants in the state, the other set will be tweaked to meet the possibility of power being supplied to Telangana as per the previous PPAs. Hence, there will be changes in tariff hike proposals. The AP Reorganisation Act lays down that Telangana will get 53.89 % of power generated from all power plants and the remaining 46.11 per cent will be given to AP.

After the Andhra Pradesh government scrapped all the PPAs (power purchase agreements), an angry Telangana government quickly approached the Central government and complained over the AP’s stance which, it said, was violative of the AP Reorganisation Act. The Centre, as a result, constituted the Neerja Mathur Committee to resolve the issue. Telangana government was strongly arguing that power allotted to it from Hinduja and Krishnapatnam thermal projects and Sileru Hydel project should be supplied to the State in accordance with the Reorganisation Act.

AP Genco and Transco Chairman and Managing Director K Vijayanand said although the Annual Revenue Requirements (ARR) finalised in the reports, the quantum of hike in tariff was yet to be decided by the utilities. A final decision on tariff hike would be taken shortly. “We are waiting for the Centre’s decision on the PPAs,” he said, adding if Centre accepted the AP’s stand, the utilities would submit first set of ARRs.

If the issue remains pending even before the deadline, the utilities would submit two sets of ARRs. The revenue requirement for the EPDCL to power purchase, free power supply and maintenance has been put at Rs 7,000 crore for the current financial year. The APSPDCL was seeking Rs 9,000 crore revenue to meet the increased financial burden.

By:Patan Afzal Babu