Discoms to sign long-term PPAs with Genco

Special Correspondent

Annual pacts earlier led to Genco’s loss of revenue

Genco launches ‘discrimination’ complaint with ERC

Revenues to be accrued to cover Genco’s total capacity

HYDERABAD: The four power distribution companies of the State are likely to sign long-term agreements with AP Genco at last, to purchase power from the latter’s generation stations.

At present, the Discoms are signing only annual power purchase agreements (PPA) with Genco for the purpose, subjecting it to heavy loss of revenue.

The AP Genco nurtured grievance for a long time that it is not being treated on a par with the private power projects in respect of purchasing power. This forced the Genco to lodge a serious complaint of “discrimination” with the AP Electricity Regulatory Commission.

At the public hearing held by ERC on the subject recently, the AP Genco Managing Director Ajay Jain made a strong plea that the Discoms must sign long-term PPAs with his undertaking, power station-wise in a month. Sources at Vidyuthsoudha said, the ERC was positively considering issuing an order, directing the Discoms to comply with the request.

If such order is given, the revenues accruing to AP Genco will go up steeply, covering its entire installed capacity of 7,000 MW available under both thermal and hydel stations.

Also, the Genco is all set to get a favourable order from the ERC to include Srisailam Left Bank Powerhouse and Jurala hydro-electric project in the list of generation stations to be considered for long-term PPAs.

The discoms avoided payment of both variable and fixed costs towards these projects.

Recommended for you