Discoms in a tizzy over tariff proposals

Hyderabad: Uncertainty over allocation of power to the Telangana state from the thermal and hydel energy generation projects in Andhra Pradesh has left the State government in a Catch-22 situation with regard to preparing proposals for power tariff hike.

The Hans India had highlighted this aspect in a report on November 10, which said that the two Telugu States were strongly differing on the applicability of power purchase agreements (PPAs) and that the electricity regulators would find it difficult to fix the tariff as there was lack of clarity on the PPAs.

Confirming this, official sources have said that finalisation of the proposal to hike power tariff for 2015-16 may get delayed as the State government is uncertain about inclusion of allocation of power from the AP-based projects in the Annual Revenue Requirement (ARR) proposals of Discoms, which are to be submitted to the Telangana State Electricity Regulatory Commission (TSERC) by the end of December. The TSTRANSCO officials told The Hans India that the two power utilities – TSSPDCL ( Southern Power Distribution Company Limited ) and TSNPDCL ( Northern Power Distribution Company Limited (TSNPDCL) – are yet to begin the exercise of preparing tariff hike proposals.

The officials said that the main reason for the delay is the confusion among the power utilities over the inclusion of power being supplied to the Telangana state from Krishnapatnam and Hinudja thermal and Sileru hydel projects.

As per the AP Reorganisation act, Telangana will get 53.89 per cent and Andhra Pradesh 46.11 per cent of the power generated from these projects. Accordingly, the Telangana state should get nearly 2,000 MW from the three power plants. The State government has been demanding 1,422 MW from the two thermal projects and 540 MW from Sileru as its share. It claims that the Telangana discoms have also invested in the three projects. After the AP government scrapped all the PPAs entered into by the Discoms in the erstwhile Andhra Pradesh, the Telangana government approached the Centre which constituted Neerja Mathur Committee to resolve the standoff between the two States.

The Telangana government has been demanding that the Centre render justice to it in power-sharing in accordance with the Re-organisation Act.

The officials said that since the issue is pending before the Centre, the power utilities are of the opinion that finalisation of tariff proposals without getting clarity on the allotted power would be difficult for them.

If the tariff proposals are prepared by including the allotted ‘unavailable power ,’ the utilities would have to meet all the power requirements because the TSERC would give its nod based on the ARRs only.

If the proposals are made without considering the allotted power from the three projects, it would tantamount to accepting the AP stand which would be a great loss for the state, a senior official said.

The officials said that the issue is taken to the notice of CM K Chandrashekar Rao.