AP Power Utilities Decide on the Owner Tariff

AP-powerHyderabad: The Telangana state have questioned the right of AP power utilities to decide on the owner tariff, usage and other matters related to Krishnapatnam power plant in Nellore district and the Hinduja plant in Visakhapatnam district.

“Neither the two AP discoms, nor the APERC, have any authority over issues pertaining to the two plants. If a state produces power and supplies to another state, the plant comes under ‘inter-state category’. The AP government has been saying that surplus power of the plants will be sold to Telangana on priority.
So, all issues should be looked into by the Central Electricity Regulatory commission and not APERC.The tariff proposals and the PPA of Krishnapatnam shall be sent to the CERC”, said Kancherla Raghu.

“Both plants are at Visakhapatnam and use coal from the Mahanadi coal fields. Their expenses will remain the same. But HNPCL will be paid Rs 4.99 per unit, but for Simhadri it is Rs 3.74 per unit, a difference of Rs 1.25 per unit. This account for Rs 3.74 per unit, a difference of Rs 1.25 per unit.
This accounts for Rs 980 crore annually and HNPCL will hugely benefit if we calculate for the whole of PPA period i.e. 30 years”, said Mummareddy Venugopala Rao, a power analyst.

Medaram Jathara

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