APERC directs Discoms to provide reasons for huge market purchase

While the state government has repeatedly claimed accrual of monetary savings of over Rs 1,000 crore by procuring cheaper power from spot markets, an analysis by the Andhra Pradesh Electricity Regulatory Commission (APERC) revealed that the state distribution companies (Discoms) went for market procurement without using available units in the state with lower variable costs.

Noting that utilising lower variable cost units available could have resulted in a potential savings of Rs 48.14 crore (between December, 2020, and January, 2021), the commission directed the Discoms to submit reasons for procuring from the markets.

The commission analysed data from December 17, 2020, to January 15, 2021, and noted that out of the 4,875 million units consumption, 894 MU (18.34 per cent) was sourced from power exchanges without considering despatch from lower variable cost sources such as thermal units in the state.

It noted that about 1,036 MU of energy was available from approved sources whose variable cost is lower than the price of exchanges.

New Indian Express
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