Electricity regulator tags riders to approval
The Andhra Pradesh Electricity Regulatory Commission (APERC) has cleared the power purchase agreement between APTransco and the 220 MW BSES Andhra Power Limited (BAPL) subject to certain terms.
The APERC gave its consent after BAPL had offered a discount of 20 paise on each of the units of deemed genration between 62 per cent and 85 per cent plant load factor (PLF) that might not be generated due to inadequate supply of natural gas to the power station. This discount is applicable only till such time BAPL does not get firm fuel tie-up to keep the plant available at 85 per cent PLF.
BAPL, which has its power plant at Samarlakota, has an allocation of natural gas from GAIL at 0.64 million standard cubic metres per day (MSCMD)on firm basis and 0.36 MSCMD on fall-back basis for the entire term of the PPA for 15 years.
This allocation was secured by BAPL following an order by APERC in December last year. The discount of 20 paise on Rs 1.80 per unit, the cheapest price offered by any IPP, is likely to cost Rs 9 crore per year for BAPL.
The fixed cost exclusive of the discount is at 98 paise per unit, APERC secretary T B Narasimha Rao. The measure is put pressure on the company to go in for firm allotment of natural gas, he explained.
BAPL also requested that this arrangement be applicable from February 2, 2002 when it commenced power supply to APTransco, infomred Narasimha Rao.
However, the electricity regulatory allowed this arrangement only from December 24, 2002 the date on which BAPL obtained firm allotment of natural gas the ministry of petroleum.
