VIJAYAWADA: With the lockdown announced in view of Covid-19 massively denting the revenue collection of the State power utilities, the officials are exploring ways to overcome the ‘unforeseen’ crisis and prepared a report on the impact on electricity sales and revenue collections for the next six months.
According to Energy department officials, notices were issued to the 315 power generators, including renewable, invoking the force majeure clauses of power purchase agreements to insulate the debt-ridden discoms from the fixed charges claims and other contractual obligations owing to the steep fall in demand and other unforeseen conditions that may arise during the lockdown.
In the last week of March, the power utilities managed to get Rs 158.6 crore through collection. This is only 40 per cent of what was collected in the corresponding period last year.
As per the official projections, it is expected to take at least four months, till August, to restore normalcy in revenue recoveries, if the monthly consumptions reduces by 20 per cent in April and May.
The officials noted that there was an average dip of up to 21 per cent in power demand ever since the lockdown was in place and the situation may worsen in the coming two months with steep fall in the commercial, railway traction, High Tension and industrial loads if the present trend continues in the State.
The AP Grid consumption on a daily basis, which was hovering around 190.5 Million Units on March 21, plummeted to 174.5 MU by March 22 and by 154.5 MU by March 26.
However, the State government has come to the rescue of the power utilities and has extended guarantee to secure loans to the tune of Rs 3,500 crore from Power Finance Corporation Ltd to meet requirements such as working capital during the ‘unprecedented’ period.
With the Union Ministry of Power relaxing certain norms such as maintain letter of credit and announcing moratorium on debt payments up on the State’s request, the power utilities tied up directly with 16 Central Generating Stations for nine-hour free power for agriculture so that the subsidies go to the generators and the utilities do not default on payments.
“But, monthly additional financial deficit is still expected, considering the likely dip in the monthly collections and other revenue sources to the level approved in the tariff order for the coming months,” a senior official said.
Dip in power use
21% dip in power demand ever since the lockdown was in place
190.5 MU AP Grid consumption on March 21
174.5 MU consumption on March 22
154.5 MU on March 26
Rs 158.6 crore collection of power utilities in the last week of March, only 40 per cent of what was collected in the corresponding period last year