AP, Telangana continue to spar over power

Andhra Pradesh and Telangana, which are fighting over various issues following the bifurcation, are now at odds over sharing power. The Andhra Pradesh Government decided to scrap the power purchase agreements (PPAs) entered into with various distribution companies, citing that such a move is covered by the provisions of the AP Reorganisation Act. But Telangana believes the move will scuttle power supply to the State.

The demarcation of power assets geographically in the ratio of 53.89 for AP and 46.11 for Telangana is causing concern to both — each believes it is not a fair division.

Monsoon blues The power supply and sharing between the two States is also linked with the water resources, as a large part of the power generation capacity is based on hydel projects. With the delayed monsoon and low reservoir levels, hydel power generation is yet to pick up, so there is not much of a problem in this area right now. However, considering both States can’t even seem to agree on sharing drinking water, sharing water for hydel projects is only likely to add to the acrimony.

Consumers — domestic, industrial and rural — in both AP and Telangana are faced with huge power cuts. The prolonged dry spell and delay in onset of monsoon have added to their woes.

Both States have initiated efforts to procure power from other States as well as from the unallocated power of Central generating stations. But the limitations of the grid in evacuating power is causing concern, as even if they manage to contract sellers, the grid is already booked.

The move by the AP Government to scrap PPAs too has caused trouble for both. The Telangana Government believes it will be short of power supply, while the AP Government has been told by the Southern Region Load Dispatch Centre, Bangalore to maintain status quo, as any such move will disrupt the harmony of the regional grid.

The Andhra Pradesh Electricity Regulatory Commission, which will serve as a joint regulator for both the States till other arrangements are made, and the Central Government have made it clear that the PPAs should not be disturbed at this point in time as it will cause hardship to both the States.

Last week, the Central Government appointed a committee to resolve power issues between the two States following bifurcation.

To submit report soon

The committee, which is headed by Central Electricity Authority Chairman Neeraj Mathur and has representatives from PowerGrid and other experts, will submit its report within a month.

Meanwhile, both States have stepped up efforts to contract additional power supplies with neighbouring Karnataka, Tamil Nadu and Chhattisgarh.

While both have obtained some commitments, the supplies hinge on the availability of corridor, which normally gets booked in advance by the buyers.

As things stand today, both States are suffering from the demand-supply gap.

However, AP seems to be in a better position as there is fresh capacity coming in, both from AP Genco and independent power developers.

While Telangana is banking on supplies from other States, its best bet will be AP, which will be able to supply excess power as the grid is already in place.