VIJAYAWADA: Claiming that they would not come out of the red unless actual power purchase costs are considered while admitting the true-up charges, power distribution companies (discoms) have filed a review petition seeking approval for another Rs 2,892 crore over and above the already approved Rs 3,103 crore by the AP Electricity Regulatory Commission (APERC).
As such, the commission has scheduled a public hearing to take the views of consumers and other stakeholders on August 4. In their review petition, APSPDCL and APEPDCL claimed that they were in a “precarious financial position” and any expenditure not included in the true-up would be “fatal” to them.
They requested the commission to consider all market purchases without any ceiling, addition fixed costs to central generating stations and other costs related to power procurement.
The total additional true-up claim stands at Rs 2,892 crore, which if approved will be collected from stakeholders concerned. It may be recalled that the commission, in November 2020, had approved Rs 3,103 crore as true-up charges for the financial years 2014-15, 2016-17, 2017-18 and 2018-19.
Noting that they were “sailing through troubled waters in terms of financials and working capital management”, the discoms added that they prudently incurred the power purchase costs in the said years for extending 24X7 quality and reliable power supply.
They added that generator/source wise audit certificates for each and every transaction were also submitted to the Commission. “Power has been procured within the ambit of power purchase agreements except for certain quantum through market purchases duly limiting the average price of procurement to the ceiling price specified by APERC.
If the actual expenditure incurred by APDISCOMs towards power purchase cost is not admitted in the true-up claims, the financial losses would shoot up and the discoms would not be in position to come out of the red,” they said, requesting the approval of the additional claim.
‘In precarious financial position’
The commission, in November 2020, had approved Rs 3,103 crore as true-up charges 2014-15, 2016-17, 2017-18 and 2018-19
APSPDCL and APEPDCL say they are in a “precarious financial position” and any expenditure not included in the true-up would be “fatal” to them
APERC schedules public hearing on August 4.