Anticipating the power shortages in the State, AP Discoms have floated tender for procuring 2000 MW (48 MU) of power from June 2012 to May 2013. The shortages are going up to 3900 MW (93 MU/ day) during the peak season.
Various power generators located within and outside AP participated in the tender. The major power generators in AP quoted their rates up to Rs 6.79 per unit for a total of 350 MW (8.4 MU). The generators located outside AP have quoted their rates between Rs 5.75 to Rs 7.39 per unit for a total of around 1125 MW ( 27 MU).
After four rounds of negotiations till 11th hour conducted on May 29, the in-State generators have finally agreed to supply power at Rs 5 per unit for about 350 MW (8.4 MU). Since this quantum of 350 MW will not be meeting the requirement of the State, negotiations were also held with the generators located outside AP simultaneously.
Most of the outside generators have expressed their inability to reduce their price below Rs 5.50 per unit (Ex-bus) on the ground that they are using Indonesian coal, the price of which has recently gone up due to change of law. Similarly, the generators operating on gas fuel also expressed their inability to reduce their ‘per-unit’ price as they are operating plants with very low PLF i.e. technically minimum of 34% due to gas shortage which has contributed for increase in production cost of unit rate as against 70% gas availability of last year. Central Electricity Authority (CEA) also indicated the unit rate at Rs 6 for gas stations operating at that low PLF. Due to these factors, there was increase in the rates quoted by the private generators this year.
It is possible to invoke Section 11 of Electricity Act 2003 for generators in AP only in which case the price is to be determined by the State Regulatory Commission. This option is not availed since the quoted rates of the in-State generators are lower than the APERC fixed ceiling rates of Rs 5.50 per unit.
In case of Lanco and GMR plants, gas was allocated to them on the condition that they supply the total quantum of power to the AP Discoms after coming through a competitive bidding. Since both generators have expressed their inability during negotiations to supply their power at APERC determined earlier rate of Rs 4.17 per unit due to non-availability of sufficient gas leading to PLF up to 34%. Therefore, AP Discoms approached APERC and apprised the position to the Commission. After examining the facts, the Regulatory Commission has continued the ceiling limit of Rs 5.50 per unit for this year also.
AP Discoms so far could contract 240 MW (State generators at unit rate up to Rs 5) plus 502 MW from outside AP generators, though the APERC approved for 2000MW and with ceiling of Rs 5.50 / unit. All efforts were made by Discoms to get maximum power at minimum rates in a transparent manner. Therefore, the prices fixed are the minimum available in the present power crisis scenario and within the APERC approved rates. The entire process of procurement of power was done in a transparent manner to supply the power to the electricity consumers to mitigate the hardships. (NSS)