The AP Electricity Regulatory Commission (APERC) has permitted the DISCOMs to procure a total of 790 MW round-the-clock (RTC) power during February and March, and to award Letters of Intent (LoI) to the successful bidders and enter into short-term supply agreements with them. It has also directed the DISCOMs to submit copies of the above agreements to it within a week.
Further, the APERC has ordered that adequate stocks of coal be maintained at the Thermal Power Plants (TPS) of AP-Genco, including Sri Damodaram Sanjeevaiah Thermal Power Station (SDSTPS), in order to reduce dependence on exchanges / markets, where the prices are volatile at the moment and are likely to rise further.
According to an official release, the APERC has observed that reliance on exchanges / markets will impose additional financial burden on the ailing DISCOMs and, eventually, on the consumers when power from the State-run TPS, which have relatively less variable costs, cannot be despatched due to paucity of coal. The commission is not inclined to accept the bids for purchasing RTC power in April and May, and evening peak power from February to May due to higher prices quoted by the bidders. The DISCOMs have sought the APERC’s approval for buying 15.3 MUs per day i.e. 400 MW RTC power and 950 MW during evening peak hours (5 p.m. to 11 p.m.) during the period January 17 to May 22. But they are allowed to procure for February and March throughthe national DEEP e-bidding portal.
