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decisions, directions or orders issued by the erstwhile APERC were adopted until any of the regulation were altered, repealed or amended under the jurisdiction of the State of Telangana.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.

Karnataka announces APPC for FY 2018-19

Recently Karnataka Electricity Regulatory Commission has announced the provisional Average Pooled Power Purchase Cost for FY 18-19. The revised APPC for FY 2018-19 is INR 3.64/unit with effect from 1st April 2018. The variation of INR 7 paisa/unit from last year’s APPC INR 3.57/unit will be paid by ESCOM’s to the RE generators concerned in three equal monthly installments for the energy supplied under APPC during 1st April 2017 to 31st March 2018.

The trend of APPC in Karnataka in the past years is as follows:

TNERC announces the Pooled Cost of Power Purchase for FY 2018-19

TNERC recently announced an order for the pooled cost of power purchase payable by Tangedco for FY 18-19 under TNERC (Renewable Energy Purchase Obligation) Regulations, 2010). The order has mentioned the criteria, mandatory for a renewable energy generating company for  obtaining accreditation from the state agency which are:

“(a) It does not have any power purchase agreement for the capacity related to such generation to sell electricity at a preferential tariff determined by the Commission; and

(b) It sells the electricity generated either (i) to the distribution licensee in the State of Tamil Nadu at a price not exceeding the pooled cost of power purchase, or (ii) to any other licensee or to an open access consumer at a mutually agreed price, or through power exchange at a market-determined price.”

With these specifications, the commission declared the Pooled Cost of Power Purchase payable by the TANGEDCO for the year 2018-19 as Rs.3.97 per unit subject to the maximum of 75% of the preferential tariff fixed by the Commission to that category / subcategory of NCES generators i.e. Rs.3.97 per unit or 75% of the preferential tariff fixed by the Commission to that category / subcategory of NCES generators, whichever is less. The Order came into effect from 1st April 2018.

The trend of the pooled cost of power purchase in Tamil Nadu in the past years is as given below.



Rajasthan Electricity Regulatory Commission (RERC) has released an order clarifying the duration of PPA’s executed under REC mechanism and for setting of tariff for the PPA’s executed under REC framework.

A petition was filed by Jaipur Vidyut Vitran Nigam Ltd., Ajmer Vidyut Vitran Nigam Ltd, Rajasthan Urja Vikas Nigam Ltd. and Jodhpur Vidyut Vitran Nigam Ltd. seeking clarifications with regards to PPA executed under REC mechanism from RERC.


The commission came to the conclusion that the operating period of PPAs shall be governed by the terms of PPA. Since as per the petitioners, all the PPAs executed under REC framework are valid upto 31.03.2019, it shall be followed. Also, the pricing methodology for determining the APPC under REC mechanism has been provided in the RERC (Renewable Energy Certificate and Renewable Purchase Obligation Compliance Framework) Regulations, 2010, it shall be followed. RERC will take the suggestions of the petitioners into consideration as and when it amends the REC regulations, 2010.


TANGEDCO, in a memo dated 15/11/2017, has released  the revised rate of power purchase with respect to the wind energy REC generators from FY 2012-13.

The On REC WEGs availed Accelerated Depreciation is as follows:


On REC WEGs not availed Accelerated Depreciation:


Himachal Pradesh Electricity Regulatory Com-mission Determines APPC for 2016-17

The Himachal Pradesh Electricity Regulatory Com-mission (HPERC) recently came up with its order on the Average Pooled Power Purchase Cost (APPC) for the financial year 2016-17.The definition of APPC followed by HPERC is in line with the CERC defini-tion and can be read as:

“Pooled Cost of Purchase means The weighted average pooled price at which the distribution licensee has purchased the electricity including  cost of self-generation, if any, in the previous year from all the energy suppliers long-term and short-term, but excluding those based on renewable en-ergy sources, as the case may be.”

The APPC for the financial year 16-17 has been deter-mined as Rs. 4.16 per Unit, by the commission which shall continue for further period with such variation or modification as may be ordered by the Commission for the next financial year.

The APPC for FY 16-17 is 8.23% higher as compared to the APPC of FY 15-16.The graph given below depicts the APPC’s determined by HPERC over last four years and how the APPC rates have in-creased over the past three years :



The regulation can be accessed here.

Draft KERC (Procurement of Energy from Renewable Sources) Fourth Amendment, Regulations 2016

KERC has notified Fourth Amendment to KERC (Procurement of Energy from Renewable Resources) Regulations on October 26th, 2016. The draft of the proposed amendment is available in www.kerc.org. The highlights of the amendment are:

  1. RPO obligation is on captive plant, grid connected plants and open access consumers only .Hence non grid connected captive plants are free from RPO obligation in Karnataka state.
  2. Every distributions licensee, captive consumer and open access consumers may purchase REC or consume electricity generated from its own Renewable Energy Power Plant whether grid connected or otherwise, to meet its RPO either entirely or partly.
  3. The obligation of distribution licensees to purchase electricity from solar energy may be fulfilled by purchase of solar REC’s only.
  4. The capacity of Renewable Energy Power Plant owned by the obligated entity shall not be less than 250Kw.

KERC has invited written comments/views/suggestions on the proposed amendment latest by November 26th 2016 from interested parties.

UERC Order on Non Compliance of RPO

UERC Maintains its tough stand for non compliance of RPO. In a recent order the Uttarakhand Electricity Regulatory Commission has directed UPCL to procure non-solar RECs equivalent to 7.50% of unmet non-solar RPO up to FY 2015-16 latest by 31st July’16. UPCL had submitted the following unmet RPO data to the commission:

The Commission has directed UPCL to meet the overall RPO FOR 2016-17 which is 8% for non solar and 1.5% for solar, either through purchase of energy from RE sources or through purchase of RECs equivalent by March, 2017. The Commission has denied UPCL to continue carrying forward of all the unmet non-solar RPO since, it has failed to tap the available power due to its own dilapidated distribution system for evacuation of power.

Also as mentioned in the order, Non-compliance of RPO will attract action against the officers responsible for compliances of regulations.

Earlier in year 2014, UERC had considered UPCL’s non-compliance as willful contravention of the direction of the Commission and had imposed penalty of Rs.20, 000/- on the Managing Director of UPCL. Thus this seems to be a strict order but in a positive direction which will help in streamlining the REC market overall.


The order can be accessed here.

MNRE Scheme for setting up of 1000 MW CTU-connected Wind Power Projects

The Ministry of New and Renewable Energy recently sanctioned the scheme for setting up of 1000MW CTU- connected Wind Power Projects by Wind Project Developers on build, own and operate basis. However, the capacity may go higher than 1000 MW, if there is higher demand from Discoms of non-windy States.

The Government of India has set an ambitious target of target of achieving 175 GW power capacity from renewable energy resources by 2022 and out of this 60 GW to come from wind power.

In order to facilitate transmission of wind power from these windy States to non-windy States provisions have been made in the Tariff Policy to waive the inter-state transmission charges and losses for wind power projects.

Some of the important highlights are:

  • The selection of wind power projects under the Scheme will be through a transparent e-bidding process followed by e-reverse auction for eligible bidders for procurement of wind power at tariff discovered through open competitive bidding process. SECI will develop guidelines for e-bidding process.
  • MNRE will play an important role by issuing Guidelines for transparent bidding process for implementation of the Scheme.
  • SECI will develop a suitable mechanism for monitoring the performance of the projects and will act as the nodal agency for implementation of this Scheme.
  • The objective of the scheme includes:
    • To facilitate supply of wind power to the non-windy states at a price discovered through transparent bidding process;
    • To encourage competitiveness through scaling up of project sizes and introduction of efficient and transparent e-bidding and e-auctioning processes
    • To facilitate fulfillment of Non Solar Renewable Purchase Obligation (RPO) requirement of non-windy states.

The full article can be accessed here.

KERC Revises APPC for FY 15-16 & Finalizes for FY 16-17

The Karnataka Electricity Regulatory Commission (KERC) in its order in April 2016 has finalized the APPC applicable for FY 15-16 and has also revised the APPC applicable for FY 16-17.

Previously the commission in its notification dated 30.03.2015 set the APPC rate for FY 15-16 at Rs. 3.11 per unit, but now through revision, the commission has reduced that from 3.11 per unit to 3.06 per unit for FY 15-16.

The order also said mentioned that the difference of 4 paisa per unit shall be recovered by the ESCOM’s from the RE generators in three equal installments.

The commission in the order has also finalized the APPC applicable for FY 16-17 at Rs. 3.10 per unit; this APPC might go through another revision once the ESCOM’s will finalize their accounts. The graph below gives the APPC’s given by the KERC in its various orders

The order can be accessed here.

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