The Andhra Pradesh Government has justified its move to scrap draft power purchase agreements with distribution companies stating that the State post the division is reeling under severe power crisis.
The proposal of AP Genco to scrap the PPAs has been received with concern by the Telangana Government. It believes that such a move is unjustified and against the spirit of division of the two states. This continues to cause tension between the two States of Telangana and Andhra Pradesh.
Following the AP Genco’s request to Southern regional Power Committee, Bangalore and National Load Dispatch Centre, New Delhi, the Load Dispatch Centre expressed its inability to cut power supply as it is bound by earlier directives.
Responding to the development, Andhra Pradesh has stated that since the power stations are to be divided based on geographical location of power plants, the existing power purchase agreements with respective Discoms shall continue for both ongoing projects and those under construction.
It further sated that nowhere in the PPAs, the specific allocation of power between Discoms has been mentioned. These PPAs are not valid as the Andhra Pradesh Electricity Regulatory Commission has not given its approval.
According to AP Genco, the agreements subsisting is for two distribution companies and as per the Electricity Act, the appropriate Government may issue directions to the regional load dispatch centres or state load dispatch centres, to ensure stable transmission and supply of electricity.
Therefore, Andhra Pradesh sought to convey to SLDC to schedule power to AP Discoms only and it is duty bound to implement the directions.
It also sought to highlight the meeting of the task force committee on scheduling procedure. The AP State Load Dispatch Centre has been separated and is operating independently. Therefore, it is bound to follow the instructions of Government to schedule 100 per cent power of AP Genco to AP Discoms.
AP Genco has listed 4418 mw capacity covering eight projects which have proposed cancellation of PPAs. These are yet to be approved by the regulator.