Andhra Pradesh Electricity Regulatory Commission approves energy charges for four units each of NTTPS and RTPP for FYs 2024-25 to 2028-29

APERC approves energy charges and O&M expenses for AP-Genco thermal power plants, emphasising compliance with regulations and efficiency improvements.

The Andhra Pradesh Electricity Regulatory Commission (APERC) on Monday approved the energy charges /variable cost of AP-Genco thermal power plants and their Operation & Maintenance (O&M) expenses for the fifth control period i.e. for the Financial Years 2024 - 25 to 2028 - 29

According to an official release, the charges for which permission has been sought by the Genco, and the approved ones respectively are: I, II and III units of Dr Narla Tatarao Thermal Power Station (NTTPS) ₹4.44 per kWh and ₹4.26 per kWh, IV unit of NTTPS - ₹4.17 per kWh and ₹4.01 per kWh, I, II and III units of Rayalaseema Thermal Power Plant (RTPP) - ₹4.44 per kWh and ₹4.40 per kWh and IV unit of RTPP - ₹4.11 kWh and ₹4.10 per kWh. 

The APGenco sought approval for O&M expenses amounting to ₹11,927 crore for the control period but got ₹9,656 crore. Of the ₹27,662 crore annual fixed and other charges proposed by the AP-Genco, the APERC approved ₹24,339 crore. 

Besides, the APERC approved the Renovation and Modernisation (R&M) works of APGenco old power plants through open competitive bidding while ruling that their impact on the tariffs would be considered on the basis of actuals (filed by the APGenco). 

The Commission advised the government to intervene and support APGenco in sorting out logistical issues related to coal supplies in order to promptly deal with shortages thereby improving Genco’s performance and lessening the DISCOMS’ dependence on power markets for maintaining 24X7 supply to the end consumers. 

Also, the APERC held that it is the APGenco’s responsibility to maintain the required coal stocks at its stations as per the norms and that the DISCOMs can file a petition in case there is a deviation of more than 10% from the norm apart from seeking recovery of the working capital corresponding to the shortfall of coal. 

Further, it (the APERC) directed the DISCOMs to make power purchase cost payments to APGenco as per the Power Purchase Agreements (PPAs) approved by it in its order dated March 6, 2024, and made it clear that the APGenco is entitled to initiate proceedings against the DISCOMS under Section 142 of the Electricity Act in addition to regulating power supply as per Rule 6 of the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, if the above direction is violated.