Amaravati: The Andhra Pradesh Electricity Regulatory Commission (APERC) issued justification notices to the three state distribution companies (discoms) for the purchase Power at prices higher than the prescribed prices.
The ERC said purchases made in December 2020 and January 2021 resulted in an unnecessary charge of Rs 48 crore on businesses. ERC said it analyzed the nightclubs’ electricity purchases over the two months and concluded that they did not purchase available electricity at lower prices.
“The discoms failed to purchase and ship around 1,036 million units of lower priced electricity available on power exchanges resulting in lost savings of Rs 48 crore “said the ERC in its notice to the discoms.
He said this was a violation of the authorizations granted in the retail purchase order issued by the ERC for 2020-2021. “He stated that if the above energy of 1036.03 UM had been shipped during the period from 17.12.2020 to 15.01.2021, the weighted average variable cost of which is less than the weighted average landed cost of the ‘Energy from trading, there could have been a potential saving of Rs 48.14 crore for discoms,’ ERC said.
He ordered the discoms to submit the reasons for not distributing electricity at a lower variable cost to the extent of full capacity by June 30. He said discoms should not buy for more than prescribed costs without the prior permission of the commission. He ordered discoms not to buy beyond the amount allowed for each station / source, unless approved otherwise by the commission.
Meanwhile, the discom CMDs in a statement clarified that the discoms had in fact saved Rs 22.7 crore during the said period due to purchases in the market. They said there was absolutely no loss of Rs 48 crore as assessed by PERC and that the matter would be brought to the attention of ERC. They said ERC erred in calculating the availability of power from approved sources. “The Commission should have considered the real-time availability as reported by the approved sources. Instead, he considered the normative approved availability given in the Retail Supply Tariff Ordinance. The Commission wrongly calculated a hypothetical loss in relation to the energy of the power plants which was not available at the time, ”they said.
The statement says the average market purchase price for the above period was Rs 3.38 per kWh, while the average price of alternative electricity available during this period from approved sources was 3.68 Rs per kWh. He explained that there was a saving of Rs 0.3 per kWh, which represents a total saving of Rs 22.7 crore.
“The discoms did not buy and ship around 1,036 million units of lower priced electricity available on power exchanges, resulting in lost savings of Rs 48 crore,” said the Andhra Pradesh Electricity Regulatory Commission said in its notice to discoms.

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