Andhra Pradesh has decided not to draw additional power from the southern grid, as it was doing earlier, following the Central Electricity Regulatory Commission (CERC) hiking the unit price to Rs 10 during peak hours.
To bring order in the additional power drawal from the grid, CERC had revised the unscheduled inter-changing rate from Rs 7.45 per unit to Rs 10 from January 2008.
According to informed sources, the AP power utilities have found it more feasible to buy power from other sources, including power generated by using naphtha within the state. While naphtha-fired power would cost about Rs 9 per unit, the grid will charge Rs 10 per unit.
??We are working out a new strategy to spare thermal power for selling to neighbouring states like Tamil Nadu and Karnataka during peak hours,?? sources said, giving a commercial dimension to the issue. The state proposes to use low-cost power, like thermal. Hydel power can be diverted to power-starving states, the sources added . The officials also plan to draw grid power during off-time for pumping water back into the hydel power unit in Srisailam. These measures would help state power utilities to reduce the cost of power considerably, officials pointed out.
In fact, the officials said these demand/supply balancing strategies would also benefit power-deficit states. If Andhra Pradesh can sell power below the grid rate, it would be beneficial to the buyers, they added. Further, this will also reduce pressure on the grid.
The state government has already committed to provide about Rs 3,000 crore in Budget 2008-09 to facilitate purchase of power during peaking hours. However, though the power utilities have twice called for tenders, it failed to receive enough offers. Only two companies evinced interest to supply power together of about 350 mw during off-time. Interestingly, they quoted a price of Rs 7 per unit, which the state power utilities are willing to take and set off against the sale to neighbouring states. Sources, however, said that the government would not get involved in these manoeuverings, as it is only concerned with 24/7 uninterrupted power supply to all categories of consumers.