Government to Cancel old Power Purchase Agreements

purchase-agreementsHyderabad: Power experts from the state have pitched for the government to cancel old power purchase agreements, saying they were disadvantageous for the state and burden the consumers.

“If they go by the PPAs, Telangana may have to shell out hundreds of crore more for the next decade. It is better to support the AP government line”, said the people monitoring Group on Electricity Regulation at a conference to discuss the tariff hike proposals.AP have proposed to cancel the PPAs.

“Telangana will have to suffer power shortage just one year. By next year, the state will get 2,600 MW, if the government’s plans fructify.Bhoopalapally (600 MW), Singareni-Jaipur (1,200 MW) and KTPS (800 MW) will start production before October 2016”, said PMG convener Raghu.

“A comparison of the annual revenue requirement reports submitted by the discoms show the gaps in consumption and the expenses. The consumption for fewer pumpsets in the southern discom is more than that of the larger number of pumpsets in the northern discom.This estimate is unreliable and something is seriously wrong”, said M.Thimma Reddy another expert.

Medaram Jathara

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