VIJAYAWADA: The fall in global gas indices and outbreak of covid19 seem to come as a blessing in disguise for the bleeding State power distribution companies (discoms) as the Andhra Pradesh Electricity Regulatory Commission (APERC) has approved downward revision of procurement tariff from LANCO and Spectrum power plants for the first half of the financial year 2020-21.
The energy department estimates that procurement tariffs may further come down.
In view of the reduction of domestic gas prices from $3.23/million British Thermal Unit (MMBTu) to 2.39/MMBTU from April 1 to September 30 this year, the Discoms requested for a downward revision in the procurement tariff from the recently approved Rs 3.29/unit (kWh) and Rs 3.31 /unit (kWh) from LANCO and Spectrum power plants.
The domestic gas prices were slashed due to fall in the gas indices globally with a dip in the demand as a result of lockdown.
“Following the discoms’ request, the APERC approved the downward revision, modifying its order dated March 27, 2020, at the rate of Rs 2.69/unit for LANCO and Rs 2.71/unit for Spectrum,” a senior official from the department explained. A letter to this effect was sent to APTRANSCO on Monday.
With the economic implications of the lockdown likely to persist for several months to come, the officials said that tariff purchase of gas-based power could further come down. “We expect the prices to drop a bit more, but it all depends on the global gas prices. Now, they are significantly low in years. So, our request was considered,” the official observed.
APTRANSCO is also purchasing power at a low tariff of Rs 1.96 per unit to Rs 2.25 per unit.