Expensive power for industry mooted

Andhra Pradesh power utilities have proposed to introduce an expensive power purchase charge (EPPC) provision to avoid power holidays to industry in the event of shortages. The scheme envisages differential pricing for supply of power when it is purchased by the utilities at a higher price during peak demand periods.

The proposal was discussed and a final decision would be taken after the approval of the Andhra Pradesh Electricity Regulatory Commission (APERC), a release said.

The government has spent around Rs 1,950 crore towards purchase of additional power during the eight-month period between April and December especially to narrow the peak gap between demand and supply in the state. Despite this, the industry had to face a two-day power holiday during the general strike that lasted for more than a month adversely affecting power generation.

The APTransco had come up with the idea of charging more for industrial supply whenever expensive power is purchased after examining similar moves adopted earlier by other states.

“States like Maharashtra and Tamil Nadu opted for a short-term power purchase programme where expensive power was purchased for willing HT industrial consumers and the corresponding costs were collected from them. As part of this scheme, AP discoms will arrange for procurement of expensive power from the market for the required quantum. In case of further requirement the balance will be met from idle capacity of private gas power plants by using R-LNG as fuel,” a release said.