In spite of higher purchase rates offered by AP distribution companies, they have managed to secure commitment for about 750 MW against 2,000 MW targeted.
This means that consumers are in for tough times as the demand is likely to be high and supply truncated.
Anticipating the power shortages, AP discoms had floated tenders for 2,000 MW (48 million units) of power during June 2012 to May 2013. The total shortage is projected to hit 3,900 MW during the peak season.
According to State Energy Co-ordination Cell, in the tender process the power generators in AP quoted up to Rs 6.79 per unit for a capacity of 350 MW (8.4 MU).
And those outside the state quoted between Rs 5.75 to Rs 7.39 per unit to supply 1,125 MW (27 MU).
After several rounds of negotiations, including on May 29, the AP-based power generators agreed to supply at Rs 5 per unit for about 350 MW.
Power producers outside AP expressed their inability to reduce their price below Rs 5.50 per unit as they are using Indonesian coal whose prices have recently gone up due to local changes.