The commission noted that a rational methodology, like an actual demand forecast model, would help the discoms contract the short-term procurement well in advance at cheaper prices.
VIJAYAWADA: The Andhra Pradesh Electricity and Regulatory Commission (APERC) has constituted an expert committee to come up with a methodology to be followed for approval/ratification of short-term power procurement.
The development comes in the wake of several stakeholders and public organisations objecting power procurement from market by the distribution companies (Discoms) despite AP being a power surplus state.
The objective of the study is to help reduce the overall power purchase cost, which account for 80 per cent of the aggregate revenue requirement (ARR) of the power companies, to the maximum extent possible, ultimately benefiting the consumers by way of reasonable tariffs besides ensuring that Discoms’ interests are protected.
“Objections are being raised time and again on the need to procure short-term power when the state has surplus energy. However, the unpredictable and intermittent nature of generation from the significant quantum of renewable sources in the state is resulting in a gap between demand and supply during certain time blocks or seasons. The short-term procurement bridges the gap,” the commission said in a statement on Friday.
The commission noted that a rational methodology, like an actual demand forecast model, would help the discoms contract the short-term procurement well in advance at cheaper prices.
“Keeping the above in view, the commission constituted an expert committee on Thursday to study and prepare a report on the methodology to be followed for approval/ratification of the short-term procurement so that the overall power purchase costs are reduced to the maximum extent possible and ultimate consumers are benefited by way of reasonable tariffs and at the same time the interests of the DISCOMs are also protected,” the statement added.
The three-member committee, comprising of professor and director of Center for Energy Studies, Administrative Staff College of India, Dr Usha Ramachandra, N Sree Kumar from Pune-based Prayas (energy group) and retired chief engineer of AP State Electricity Board M Sivarami Reddy, will submit its report within a month.
It may be recalled in the recent public hearing held by the commission on the retail supply tariff and ARR for 2021-22, several objections were raised against power procurement from markets and other short-term purchases. In wake of this, the commission, which has been working to reduce the power purchase costs so that the end consumers are spared from the burden of paying excess tariffs, decided to form a committee.
Source: newindianexpress
