The AP power utilities have initiated several steps like purchasing additional 300 MW power from May 31 through short-term power purchase besides getting optimum power from APGENCO and Central generating stations. The short-term purchases are being carried out to minimize the inconvenience to the consumers in view of the prevailing shortage of power which is primarily due to inadequate supply of natural gas to the State. The APDISCOMs got approval from APERC for calling tenders for short-term procurement of power from May 31 to May 29, 2014 to overcome the shortfall.
The APDISCOMs called tenders on e-procurement platform for purchase of 2000 MW round-the-clock power for the period from May 31, 2013 to May 29, 2014 and received 12 bidders participated, out of which, two bidders quoted only from outside Southern Region generators, four bidders from both outside Southern Region and State connected generators, five bidders only from State Generators and one bidder from generators located within State but connected with Power Grid (Central Transmission Utility). The rates quoted in the tender vary from Rs 5.70/Kwh to Rs 7.54/Kwh for the State generators and Rs 6.70/Kwh to Rs 6.97/Kwh for Southern Region generators and Rs 4.66/Kwh to Rs 4.82/Kwh for outside Southern Region generators.
A committee has been constituted for negotiations with private generator / trader for five rounds for reducing the rates offered by private generators. After prolonged negotiations, the State generators agreed to supply at the rate up to Rs 5.45/Kwh and Southern Region generators agreed to supply at the rate up to Rs 6.07/Kwh and outside Southern Region generators agreed to supply at the rate up to Rs 4.30/Kwh. The APDISCOMs brought the State generators to sell their power @ Rs 5.45/Kwh.
Total availability is around 1500 MW. During June 2013 to June 2016, Andhra Pradesh has booked the corridor of 550 MW, Tamil Nadu 500 MW and Kerala 300 MW. Balance of 150 MW will be available for corridor booking under short-term on month to month basis. All the Southern States AP, Tamilnadu, Kerala and Karnataka will competent for this small quantum of corridor.
APDISCOMs placed the orders of 640 MW for purchase of power from outside Southern Region generator during the month of June’12 to May’13 and got the corridor 50-100 MW only in 5 months and Nil in balance months. APDISCOMs placed orders of 500 MW on outside Southern Region generators for the months of 31st May, 2013 to 29th May 2014 @ Rs.4.09/Kwh at Southern Region periphery (landed rate of Rs.4.30/Kwh) with a hope to get balance corridor of 150 MW competing with other Southern States. If APDISCOMs have not tied up this power, other Southern States Tamilnadu, Karnataka and Kerala may tie up with these generators. Presently, APDISCOMs are imposing power cuts to industries (35% of PLF), 12 hrs. day time (6 AM to 6 PM) to villages, 4 hrs. to District & Mandal head quarters even with the above short term power purchases. If APDISCOMs have not tied up the above purchases for the month of 31st May, 2013 to 29th May 2014, load relief to Industries, Towns and Villages may further needs to be increased. It is settled market position that cost of short term purchases are more when compared to medium term and long term purchases.
The DISCOMs felt that since there is no other alternative to bridge the gap between demand and supply, then to purchase power at the aforesaid negotiated rate from State Generators and Southern Region Generators to mitigate problems to consumers in the State. Therefore, it was decided to go for short term power purchases for the period from 31st May, 2013 to 29th May 2014 at the finally negotiated price which is less than APERC approved rates for the year 2013-14. (NSS)
