Ereb Defers Plan To Cut Supply To Andhra

Andhra Pradesh's current agreement with the electricity board will expire in November, after which EREB is unlikely to continue exporting power.

In such an eventuality, the state might have to sign import contracts with Central power agencies, which will demand guarantees like revolving letter of credit.

Eastern Region Electricity Board chairman S R Shikdar, who is also the West Bengal State Electricity Board chairman had taken a hardline line against defaulters like CESC, and unlikely to spare Andhra Pradesh.

At present, technical compulsion has forced Eastern Region Electricity Board to continue exports to Andhra Pradesh, despite the arrears. Until the monsoons end, the region's hydel power stations will generate power at full capacity. This is leaving a surplus of over 400 mw in the region for about 12 off-peak hours of the day. Suspension of export will lead to shutting down of power stations.

 

Andhra Pradesh and Assam receive 300 to 400 mw of power, mostly during off-peak hours.

Eastern Region board, which has been exporting power to Andhra Pradesh under a two-year contract since December 1994, routes its supply through Power Grid Corporation.

The West Bengal State Electricity Board, Orissa State Electricity Board and Damodar Valley Corporation have surplus energy to give to Andhra Pradesh. This off-peak surplus is made up of from these agencies' share of central sector power.

The three had once hoped to make profit from this export but now instead face non-payment by Andhra Pradesh and Assam. PGCL is exerting pressure by regulating supply to these agencies during peak hours.

The exporters have said they will surrender the surplus power and the National Thermal Power Corporation and PGCL can sign a direct contract with Andhra for supply. The central agencies are taking time to finalise the contract.

West Bengal State Electricity Board has the maximum outstandings against power export to Andhra Pradesh and Assam.

The more these agencies are exporting power, heavier is the loss. Andhra Pradesh is to pay at the rate of Rs 1.54 for each unit of energy.

But, the cost of central sector power is over Rs 2 a unit.

Though the board has adopted a tough stand against Andhra Pradesh, it is relatively soft on Assam, which gets power at a lower rate.

As of now, no serious attempt has been made to realise the outstandings or raise tariff.