VIJAYAWADA: While the state government has repeatedly claimed accrual of monetary savings of over Rs 1,000 crore by procuring cheaper power from spot markets, an analysis by the Andhra Pradesh Electricity Regulatory Commission (APERC) revealed that the state distribution companies (Discoms) went for market procurement without using available units in the state with lower variable costs. Noting that utilising lower variable cost units available could have resulted in a potential savings of Rs 48.14 crore (between December, 2020, and January, 2021), the commission directed the Discoms to submit reasons for procuring from the markets.
The commission analysed data from December 17, 2020, to January 15, 2021, and noted that out of the 4,875 million units consumption, 894 MU (18.34 per cent) was sourced from power exchanges without considering despatch from lower variable cost sources such as thermal units in the state. It noted that about 1,036 MU of energy was available from approved sources whose variable cost is lower than the price of exchanges.“Had the above energy of 1,036.03 MU been dispatched during the period from December 17, 2020, to January 15, 2020, the weighted average variable cost of which is lesser than the weighted average landed cost of energy from the exchanges, there could have been a potential saving of Rs 48.14 crore to the Discoms ... and to that extent purchases from exchange could have been avoided,” the commission said in a letter (dated June 8) written to the three Discoms, marking a copy to the state energy secretary.
The commission arrived at the figure based on the weighted average cost of the exchanges and the weighted average cost of the approved units, but did not factor in other direct and indirect charges such as point of connection (PoC) charges, interstate transmission losses, auxiliary consumption of units under reserve shutdown, coal degradation at thermal units, zero scheduling charges of coal mines, interest component (payments made in advance for day ahead purchases to exchange), GST component, and others. If these are included, the savings could be even higher, it is learnt. It may be recalled that the commission had already written to the Discoms in February, 2021, seeking justification for the ‘huge’ market purchases.
The latest letter revealed that the Discoms have not furnished any justification. “The Discoms have not stated in the data submitted to the commission the reasons for not dispatching lower variable cost sources to the extent of their full capacities. Therefore, the Discoms are directed to submit on or before June 30 the reasons for not despatching the energy from the lower variable cost sources to the extent of their full capacities source wise, as this could have resulted in potential savings.”
Junior engineer suspended for collecting Rs 34 cr for promotions
APTRANSCO’s joint managing director (vigilance and security) K Venkateswara Rao, on Wednesday, said that superintending engineer (operations) of Nellore has placed junior engineer (operations) from Venkatagiri P Sreehari Babu under suspension for allegedly collecting Rs 34 lakh from sub-engineers in the guise of getting them promotion. After vigilance team probed the matter, the JMD noted, it came to light that the accused was actively involved in the promotion process.