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Home News Power Sector News APERC rejects move to scrap PPAs with Discoms

APERC rejects move to scrap PPAs with Discoms

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APERCThe Andhra Pradesh Electricity Regulatory Commission has rejected the Andhra Pradesh Government proposal to withdraw the draft power purchase agreements entered with distribution companies. In an order based on the request to cancel the agreements, the regulator stated it was unable to consider the request since it has not been made by the parties who filed the PPAs before the commission.

Andhra Pradesh and Telangana are caught in a tussle over scrapping of the PPAs. While the former believes that it was not binding for them to honour draft PPAs as per the current norms, Telangana Government states that it has been unjustly seeking to cancel them causing shortage of power against the spirit of division.

The AP 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.

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 inability to cut power supply as it is bound by earlier directives.

Responding to the development, AP stated 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.

Source- The Hindu


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