Citing technological interventions, Andhra Pradesh discoms approach regulator to reduce wind power tariffs

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New Delhi | Published: February 19, 2019 5:26:14 AM

The Andhra discoms have recently come under pressure with piling dues to power generators. NTPC’s outstanding receivable from Andhra Pradesh (over 60 days) are pegged at Rs 2,220 crore at the end of 2018.

power sector, power industry, ntpcThe Andhra discoms have recently come under pressure with piling dues to power generators.

The electricity distribution companies (discoms) of Andhra Pradesh have approached the state’s electricity regulator to lower the rates at which it procures wind power. The discoms want to change the parameters used to determine the tariffs of wind power plants in the state, which would result in lower tariffs.

The state-owned companies claimed that a shift in market dynamics and technological interventions does not justify the Rs 4.84-per-unit tariff — determined through the earlier mechanism — anymore and has “resulted in unjustified burden on the consumers of the state”.

For the calculation of wind tariffs, the discoms want the normative capacity utilisation to be increased to 26.5% from 23.5%, the return on equity to be considered at 14%, down from 16% set earlier. The rate of interest considered for calculating wind tariff should be 9.23% instead of the 12.76% determined by the regulator earlier, the discoms claimed.

As many as 82 wind power generating firms, including the subsidiaries of ReNew Power, Adani Power, Tata Power, Mytrah and Ostro Energy, are the respondents to the appeal.

The discoms pointed out that the lowest wind tariff discovered in the maiden bidding hosted by the Central government auctioned in February, 2017 was Rs 3.46 per unit, and it fell to lower than Rs 3 per unit in the subsequent auctions.

The Andhra discoms have recently come under pressure with piling dues to power generators. NTPC’s outstanding receivable from Andhra Pradesh (over 60 days) are pegged at Rs 2,220 crore at the end of 2018.

Also read: Punjab budget gives fuel relief! Petrol prices cut by Rs 5, diesel down by Re 1

The Andhra Pradesh Power Finance Corporation (APPFC) is issuing bonds of Rs 2,000 crore to pay the outstanding dues after NTPC threatened the state discoms of curtailing power supply if the bills are not cleared soon.

In a review meeting recently held to map the progress of various schemes under the Union power ministry, Andhra discom officials blamed delayed payment from its state departments for its rising losses.

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