TSERC announces APPC cost for FY 2018-2019

Telangana State Electricity Regulatory Commission (TSERC) announces its average pooled purchase cost for the year FY 2018-19. The APPC cost of INR 4.097/kWh for FY 17-18 will be continued for this financial year as well. In an order followed by a petition by TSSPDCL and TSNPDCL which had requested the commission to consider the pooled cost of power purchase in FY 2017 – 2018 for FY 2018 – 2019 as per the regulations stated in Electricity Act 2003. The average power purchase pooled cost of INR 4.06/kWh was discovered by both the DISCOMs.

The petitioners were of the opinion that post to the formation of Telangana in 2014 all regulations, decisions, directions or orders issued by the erstwhile APERC were adopted until any of the regulation were altered, repealed or amended under the jurisdiction of the State of Telangana. This also included renewable power purchase obligations (RPPO), for which the commission issued regulations fixing the RPPO to be met by the obligated entities from FY 2018-19 to FY 2021-22.  

To which the commission replied that “Pooled cost of power purchase’ means the weighted average pooled price at which the distribution licensee has purchased electricity in the previous year from all the long-term energy suppliers excluding the purchases based on liquid fuel. Provided that the purchases from traders, short-term purchases and purchases from renewable sources shall not be taken into account while determining pooled cost of power purchase.”

The discoms further stated that policies like the state solar power policy 2015 & industrial policy allow a solar net metering & other incentives to be applicable for 25 years and a customer availing for this mechanism will be paid back at the APPC cost decided by the commission on a yearly basis.

Apart from Telangana, Southern states of Karnataka and Tamil Nadu have also recently announced their APPC cost for the FY 2018-2019.

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