Ensure sufficient coal stocks, APERC tells DISCOMs

Visakhapatnam/Vijayawada Andhra Pradesh Electricity Regulatory Commission (APERC) has directed the DISCOMs to ensure sufficient stock of coal at their disposal.

Several areas in Visakhapatnam, Srikakulam, Vizianagaram and East and West Godavari districts in AP experienced power outages for several hours on Friday.

In a directive, APERC asked the DISCOMs to take all necessary steps/measures to see that adequate coal stocks as per the norms at APGENCO/Sri Damodaram Sanjeevaiah Thermal Power Station (SDSTPS) thermal power plants are maintained immediately to reduce dependence on exchanges/markets as the prices there are volatile and based on the existing trend, they are likely to increase further.

The power regulatory body stated that dependency on the exchanges/markets will impose additional financial

burden on the DISCOMs and ultimately on the consumers when power from State-run thermal power plants having lesser variable costs could not be dispatched due to insufficient coal stocks.

The commission has granted approval to the DISCOMs to procure 400 MWs & 390 MWs RTC (round the clock) power only during February & March respectively. The DISCOMs are permitted to award Letters of Intent (LOI) to the successful bidders for the quantum permitted by APERC during the period and enter into necessary short-term supply agreements with them.

APERC said in a statement that the DISCOMs are directed to submit copies of the agreements to the commission within a week of entering into them with the successful bidders. The commission stated that APERC is not inclined to accept the bids for RTC power in April & May and evening peak power in all the months (February to May) due to the higher prices quoted by the bidders. APERC also stated that the proposal for January was infructuous due to the delay in bids finalization by the DISCOMs.

The DISCOMs had sought the commission's approval for procurement of energy of 15.3 MUs per day i.e., 400 MW RTC (00:00 Hrs to 24:00 Hrs) and 950 MW during evening peak hours (17:00 Hrs to 23:00 Hrs) during the period from 17.01.2022 to 22.05.2022 under short-term basis through National DEEP e-bidding portal.

After examining the request of the DISCOMs in detail, the commission permitted them to float the bids with a direction to place before it (commission), the details of the quantum of power offered and prices discovered in the DEEP e-bidding portal and the quantum of power they propose to procure, without awarding the Letter of Intent (LOI) to the bidders.