We won’t Honour PPAs: AP Genco

The APGenco wants the State Level Despatch Centre not to supply power to T from the power plants located in AP

Published: 22nd June 2014 07:59 AM  |   Last Updated: 22nd June 2014 07:59 AM   |  A+A-

HYDERABAD: Two days after the Electricity Regulatory Commission (ERC) had rejected APGenco’s request for cancellation of the draft power purchase agreements (PPAs), the APGenco has dashed off letters to all the four Discoms and the ERC again that it will not honour the PPAs.Two of the four Discoms are in Telangana.

It may be recalled that the APGenco wanted cancellation of PPAs but the ERC rejected the request, saying that the APGenco of the residuary AP was not a party to the PPAs.

Now, APGenco went a step forward and stated that the PPAs agreed to by the united AP government were not acceptable to it. The united AP Genco and the four Discoms were parties to the PPAs. Now, the united APGenco is divided into two _ Telangana Genco and AP Genco.

In the wake of the fresh letter, the AP Genco wants the State Level Despatch Centre (SLDC) not to supply power to Telangana from the power plants located in Andhra Pradesh (Seemandhra). This may lead to disturbances in the southern grid.

The AP government is firm on its stand not to supply power to Telangana as mentioned in the AP Reorganisation Act. The AP government is also planning to move court on the issue while the Telangana government is trying to make the AP honour the AP Reorganisation Act. Now, the power sharing row between Andhra Pradesh and Telangana has reached Central government which has to take a final decision.

Meanwhile, Telangana principal secreatry (energy) Suresh Chanda worte to AP GENCO requesting it to maintain the status quo in regard to honouring PPAs and supply of power to Telangana.


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