The bifurcation blues have now taken over the State Energy Regulatory Commission what with the APERC suggesting several measures to tackle the crisis in the offing related to power supply to Telangana and Andhra Pradesh States.
The APERC has released a series of suggestions to overcome the impending crisis on account of the bifurcation of the State becoming effective from June 2. The Commission said, in its communique late on Tuesday night, that the electricity industry needed to be reorganised and restructured in line with the provisions of the AP State Reorganisation Act. Though the Act contained provisions relating to restructuring and reorganisation of the power utility, the approach had been inadequate, the APERC said.
One of the contentious issues mentioned by the Commission was the power purchase agreements signed with private producers. The PPAs were not project specific or distribution company specific as they had been signed between the APGenco and the private producers collectively. There as an amendment needed for transfer of Anantapur and Kurnool circles, presently in the purview of the Central; Power Distribution Company Limited to Southern Discom.
Though a provision has been incorporated in the Act for dividing the APERC into two, it militates with the existing provision in the Act that provided for undivided commission. There were also concerns expressed over the sale of power between the successor States wherein the State with deficit power had the first right of refusal. “This provision does not provide any comfort to the deficit State and there should instead be provision for the maximum price at which the surplus State can offer power to the deficit one,” the advisory issued by the APERC said.
Moreover, the provisions incorporated in the Electricity Act mandate the Commission has been constituted with perpetual effect and this needed to be amended. Quoting the provisions in the Act, the APERC suggested an approach on the lines of the constitution of the AP Public Service Commission to create a separate regulatory commission for the two successor States. There was also dispute related to the allocation from the Central Generating Stations. While the allocation at present was based on the actual consumption of the two regions, the provisions should be amended in such a way that the pattern of allocation would suit both the States, the APERC observed.
