In order to protect the interest of the consumers and to ensure the financial health of the APDISCOMs, the AP Electricity Regulatory Commission (APERC), in a significant development today insisted the implementing agency of Domestic Efficient Lighting Program (DELP) scheme which is underway in the State to reduce the project costs and thereby the burden on the APDISCOMs and ultimately on end consumers.
Hearing on the petitions filed by the DISCOMs seeking approval to the implementation of DELP scheme in all Districts of AP at an estimated scheme cost Rs 268.54 Crs, the Hon’ble Chairman APERC Justice Bhavani Prasad along with members of APERC Dr. P. Raghu & Sri P. Rama Mohan discussed with the officials of DISCOMs and the implementing agency M/s Energy Efficiency Services Limited (EESL), a Central Govt. undertaking. After elaborate discussions, both the parties have agreed for a revision in the project financial parameters as per the Table below.
|
Sl. No |
Project Financial Parameter |
Proposal as per the Petition |
Revised as insisted by the Commission |
|
1 |
Interest Cost on Debt: |
12.5% |
10% |
|
2 |
Return on Equity |
15.5 % |
14% |
|
3 |
Annual Maintenance Charges |
2.5% |
1.5% |
|
4 |
Public Awareness Cost |
Rs1.5 Cr per District |
0.1 Cr per District |
During the hearing, Justice G. Bhavani Prasad stated that the ultimate motto of the Commission is to ensure consumer satisfaction and financial health of the Distribution utilities in the State and every possible alternative would need to be explored to reduce the project costs of the DELP scheme in the interest of the common consumer. Each cost component of the scheme has to be thoroughly examined for possible reduction of scheme cost and there by the burden on the end consumer, as ultimately the scheme cost is to be recovered by the DISCOMS through tariffs and to be repaid to the implementing agency in five years/ three years , said Justice Bhavani Prasad.
The apt and intervention of APERC is expected to relieve the burden on AP DISCOMs to the extent of Rs 10 Crs per Annum. The gesture of this Hon’ble Commission is well received by the power sector officials, general public and all stake holders.
Later today, after a brief meeting with the Commission, Sri Ajay Jain, Secretary Energy, I&I Dept, GoAP informed that, the concerted efforts of AP Govt. in implementing energy efficiency schemes like DELP, LED based Street Light fixtures in all Urban Local Bodies & Inefficient pump sets replacement in Agriculture sector etc., have been greatly appreciated by the National & International agencies involved in promoting environmental protection, energy conservation and efficiency front. These include World Bank and other International institutions. The DELP scheme being implemented in Andhra Pradesh with an objective to distribute about 2 Cr LED Bulbs to households by March 2016 is touted to be the largest energy efficiency programme not only in the country but also in the entire world. So far about 51 Lakh LED bulbs are distributed in four pilot Districts, and the distribution in West Godavari, which is the last one in the pilot project is expected to be completed by 15th June 2015, said Sri Jain.
Appreciating the initiatives of AP Govt. in Energy Efficiency front, Sri Saurabh Kumar, MD/EESL said that AP has become a model state in the entire country in implementation of LED based energy efficient schemes. Going by the progress achieved by AP state, other states in the country have also started implementation of EE&EC programmes. Distribution of around 10 Crs LED bulbs has been taken up in the entire country out of which 2 Crs bulbs are being distributed only in AP said MD/EESL.
It is to remind that the two DISCOMs in AP viz APSPDCL and APEPDCL have filed petitions before the Hon’ble APERC seeking approval for implementation of DELP scheme in all Districts of AP at an estimated scheme cost Rs 268.54 Crs. In the Stage-I of the scheme, four Districts in AP i.e two in each DISCOM (Guntur & Anantapur in APSPDCL and Srikakulam, West Godavari in APEPDCL) have been taken up at an estimated cost of Rs 101.4 Crs. M/s Energy Efficiency Services Limited (EESL) a Government of India undertaking is investing the money upfront in the scheme on behalf of the DISCOMs and DISCOMs are supposed to repay the amounts in five years for Stage-I and in three years in Stage-II, duly bearing Interest cost, Return on Equity, Project Maintenance Cost, Public Awareness Cost and the applicable Taxes etc.
Ranganatham, Advisor, Energy Dept, GoAP, Saurabh Kumar, MD/EESL, Mutyala Raju CMD/APEPDCL & . H.Y.Dora CMD/APSPDCL and A. Chandra Sekhar Reddy, CEO/APSECM have participated in the hearings. (NSS)