RERC Approves APPC for FY 14-15 and 15-16

Rajasthan Electricity Regulatory Commission (RERC) in its orders dated 1st April, 2016 has approved the Average Power Purchase Cost (APPC) for its DISCOM’s. Honorable commission approved APPC of FY 14-15 & 15-16 for Jodhpur, Jaipur & Ajmer Discoms.

The Order came in response of petitions filed by the Discoms for the approval of the APPC. The details of the approved APPC are highlighted below:

The graph below gives a comparison of the APPC approved by the commission over the past five years:

The APPC rates have decreased for the FY 15-16 on an average by 3.94% for all the three Discoms. The average pooled cost of power purchase for FY 2015-16, shall be the provisional pooled cost of power purchase for FY 2016-17 till the same is determined by the Commission.

The order for Ajmer Discom APPC can be accessed here.

The order for Jaipur Discom APPC can be accessed here.

The order for Jodhpur Discom APPC can be accessed here.

 

 

KERC Revises APPC for FY 14-15 & Finalizes for FY 15-16

The Karnataka Electricity Regulatory Commission (KERC) in its order dated 31.03.2015 has finalized the APPC applicable for FY 15-16 and has also revised the APPC applicable for FY 14-15.

Previously the commission in its notification dated 30.06.2014 set the APPC rate for FY 14-15 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 14-15.

The commission in its order said that as the ESCOM’s have finalized their accounts for FY13-14 and based on the same the APPC for FY 14-15 is to be Rs. 3.06 per unit. The order also said mentioned that the difference of 5 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 15-16 at Rs. 3.06 per unit, this APPC might go through another revision once the ESCOM’s will finalize their accounts for FY 14-15. The graph below gives the APPC’s given by the KERC in its various orders.

The commission order can reached here.

Andhra Pradesh declares APPC for FY15

Hon’ble Andhra Pradesh Electricity Regulatory Commission (APERC) in an order (DATED – 31 MAY 2014) has determined the APPC for FY 14-15.

The definition of the APPC being followed by APERC can be read as –

‘Pooled Cost of Power Purchase (PCPP)’ 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.

AP’s APPC definition is not in sync with that of CERC as it excludes power purchases from suppliers based on liquid fuel, Purchases from Traders, short term purchases and purchases from Renewable sources.

The APPC for FY 14-15 has been calculated as Rs. 3.38 per unit.

The APPC is AP has been growing steadily with a CAGR of 7.91%.

The order by APERC can be found here.

Our previous Blog posts on APPC of other states can be Read here.

Contributed by – Dheeraj Babariya

Himachal Pradesh proposes APPC for FY 2014-15

HPSEBL has filed a petition before Himachal Pradesh Electricity Regulatory Commission (HPERC) seeking APPC determination for FY 2014-15.

The definition of APPC followed by HPERC can be read as –

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 energy sources, as the case may be.

HPSEB has proposed the APPC as Rs. 2.24 against the current APPC of Rs. 2.17, and has requested to approve the same APPC for FY-14-15 effective from 01 April 2014.

A copy of the proposal can be found by clicking here.

Our previous blog post on Himachal Pradesh APPC for FY 13-14 can be read here.

Blog post on all other states APPC can be read here.

Contributed by – Dheeraj Babariya

Madhya Pradesh determines APPC for FY15

Madhya Pradesh Electricity Regulatory Commission (MPERC) has finally unveiled its APPC rate for financial year 2014-15. MPERC follows this definition of APPC  (which is in line with that of CERC) –

for the purpose of these regulations ‘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 energy  sources, as the case may be.”

i.e. it excludes only renewable energy for APPC rate calculation.

Accordingly the APPC for FY15 has been determined as Rs. 2.66 per unit (up by 5.13% as compared to APPC FY14).

APPC for FY14 was Rs. 2.53 per unit.

More details can be had on Page no. 63 of this Retail Tariff Order.

Karnataka APPC for FY 2014-15

Karnataka electricity regulatory commission (KERC) has finalized the average pooled purchase cost (APPC) for FY 2013-14. The finalized APPC of FY14 is Rs. 3.14 per unit, on the basis of audited accounts data furnished by ESCOMs, which is up by 7 paise. Our previous blog-post on APPC of FY14 can be read here.

In the interim, since ESCOMs will take some time in finalizing power purchase quantum and cost of FY15, the commission has set up Rs. 3.14 per unit as an interim APPC rate to be effective from 1st April 2014 to 30th June 2014. It is expected that by end of June, a new and final APPC rate for FY15 will be declared.

Karnataka, therefore becomes the first state in current FY to declare APPC for FY15. The APPC rates in Karnataka have had an increasing trend, which is good specifically for RE generators wanting to explore REC markets in the state.

A gazetted copy can be accessed here.

KERC had also invited comments and suggestions for finalization of APR Fy13 and ARR of FY15 filed by discoms and KPTCL. The public hearing was scheduled to be conducted during end of April 2014 as per notice.

 

Gujarat’s first amendment to RPO regulations

Gujarat Electricity Regulatory Commission (GERC) on 4th March 2014 amended its principal RPO regulations of 2010. In these regulations, Gujarat set its RPO targets post FY13. The RPO set are from FY14 to FY17.

Gujarat announced 10% of energy procurement to come from renewable sources, for its obligated entities for FY17.

The year-wise RPO targets effective April 2014 are tabulated below:

GERC also introduced the definition of APPC which was hitherto missing. Average Power Purchase Cost (APPC) for the purpose of REC Mechanism is in line with that of CERC and is defined as –

‘Average Power Purchase Cost’ 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 energy sources, as the case may be.’

In addition, GERC also clarified that a RE project registered under REC mechanism selling power under captive or third party mode will receive payment equal to APPC for excess injection after off-setting its own consumption, from the discom.

The present order on amendment can be accessed here

The principal RPO regulations of 2010 can be read here

Rajasthan to finalize APPC for its DISCOMs

State owned distribution companies in Rajasthan namely; Jodhpur Vidyut Vitran Nigam Limited (JdVVNL) and Jaipur Vidyut Vitran Nigam Limited (JVVNL) have filed petitions for APPC determination of FY13 and FY14 respectively. The commission had previously declared provisional APPCs for both.

Before going in to the details, it is pertinent to note the definition of APPC being followed by Rajasthan –

“Pooled Cost of Power Purchase: The weighted average 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, excluding short term power purchases and those based on renewable energy.” 

Unlike other states Rajasthan excludes short-term power purchases also, along with renewable power purchases.

JdVVNL petition for finalization of APPC FY13

RERC had finalized a provisional tariff of Rs. 2.75 per unit for FY13 as per its order dated 11th Jan 2013. Whereas, in the current petition based on audited accounts JdVVNL has asked for approval of Rs. 2.6713 per unit as per audited accounts of FY12.

Comment invited by 5th March 2014.

JVVNL petition for finalization of APPC FY14

In case of JVNNL, RERC has been asked to finalize the APPC of FY14 as Rs. 3.0865 per unit as per audited accounts of FY13.

Comments invited by 28th February 2014.

Our previous blogpost on Rajasthan APPC can be read here.

Blogposts on all other states APPC can be read here.

Andhra Pradesh declares APPC for FY 2013-14

An order dated 28th December 2013, for determination of APPC of FY 2012-13 (for FY 2013-14), considered 6,88,79.12 MUs of power bought at  22,594.78  crore INR by discoms of the state.

Accordingly the APPC for FY 2013-14 is finalized to be at Rs. 3.28/unit.

The following can be read on the payment adjustment issue –

“The difference between the provisional pooled cost of power purchase @ Rs 2.69/kWh (of FY 2011-12 considered for FY 2012-13) and the pooled cost now determined shall be paid to the developer in six equal monthly installments.”

All relevant orders on APPC in other states can be accessed here.

Our previous coverage on APPC of FY 2012-13 in Andhra Pradesh can  be accessed here.

The present order can be read here.

 

KERC order on Wheeling and Banking charges for RE generators

Karnataka Electricity Regulatory Commission through an order dated 9th Oct 2013 has decided to extend the validity of order (dt – 11.07.2008) till end of current financial year, which was previously mandated to be valid only till 10th July 2013. The key points in this order are the following:

1) The wheeling charges and banking charges will continue to be 5% of the injected energy and 2% respectively along with additional UI charges between the time of injection and time of drawal.

2) Captive consumers of the state wanting to avail the benefits under the REC scheme will have to pay normal transmission, wheeling and banking charges.  

Normal wheeling charges –

For HT network –  9.85 paise per unit

For LT network – 22.99 paise per unit.

 3) Captive generators will be allowed to bank the excess energy, accounting of which will be done on monthly basis (instead of annual basis).

4) Excess energy (if any) with the distribution licensee, at the end of the month, shall be paid by the DISCOM (in whose generator is plant is situated) at the APPC rate. Currently, the APPC rate is 3.07 Rs per unit.

5) The commission will shortly issue a separate format of wheeling/banking agreement for RE generators willing to participate in REC mechanism.

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