AP Transco will begin purchasing additional 300 MW of power from Friday as part of the short-term arrangement.

If this capacity is operated at full level, the utility will get nearly 7.2 million units daily.

The fresh purchase, being resorted to with the approval of Andhra Pradesh Electricity Regulatory Commission, will continue up to May 29, 2014. The price, finalised after several rounds of negotiations, worked out to Rs.5.45 per unit for the first category of bidders, Rs.6.07 for the second category and Rs.4.30 in case of the third category, according to State Energy Coordination Cell.

The Transco is already purchasing 40 mu daily to meet the shortage which is still continuing due to a variety of reasons, including the hot weather prevailing in the State.

The overall demand (with prolonged durations of load-shedding in rural areas) stands at 270 mu per day these days while the supply from all Transco’s sources is made to the tune of 235 mu.

The State Energy Coordination Cell has justified the price offered to short-term suppliers, citing increase in indigenous and imported coal, fluctuations in foreign exchange, customs duty and countervailing duty being collected by the Centre each at 2 per cent, rise in diesel prices, and hike in prices of spare parts and lubricants.

It said the cost of inputs has risen by 25 per cent while the price offered to sellers is enhanced by only 9 per cent.