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.

 

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.

 

RERC to finalize APPC of FY 2011-12

Jodhpur vidyut vitran nigam Limited has submitted to RERC the proposition to finalize the APPC for FY 2011-12 as the audited for  financial year ending by March 2011, are now available.

RERC in an order dated 2nd Nov, 2011 had determined the APPC of Rajasthan to be Rs. 2.57 per unit on provisional basis. In the petition filed ,  the Jodhpur DISCOM, as per audited accounts for FY11 has worked out the APPC of FY 2011-12 to be Rs. 2.7350 per unit. Comments on the same were invited by RERC no latter than 15th Oct 2013. This increase in APPC if finalized will be 6.42 % higher than that declared previously.

The working excel on the same can be accessed on the home-page of RERC –  http://rerc.rajasthan.gov.in/.

It will be pertinent to note that RERC, unlike most states, in its definition of APPC, excludes short term power purchase also along with renewable energy. APPC in Rajasthan is defined as –

“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.”

APPC for FY 2012-13 can be known by clicking here.

Uttarakhand declares its APPC for FY 2013-14

Uttarakhand on 26th September 2013 unveiled the “average power purchase cost” for FY14. UERC has considered the power purchase data of FY13 to arrive at APPC for current fiscal. The following is the definition of APPC being followed in Uttarakhand –

“weighted average pooled price at which the distribution licensee has purchased the  electricity including the 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.”

Based on power purchase expenses of FY13 furnished by UPCL to UERC, an APPC rate of Rs.2.72 per unit has been finalized.  With the deceleration of this rate, the effective realization for RE generators of the state under the APPC + REC model accounts to be Rs. 4.22 per unit.

For copy of the order and details of power purchase expenses considered, click here.

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