APTEL's verdict on inclusion of Banked Energy in accounting APPC

Appellate Tribunal for Electricity (APTEL) in a judgment on 01st July 2014 has dismissed a petition filed by Himalaya Power Producers Association (Association of persons who are involved in the development and promotion of hydro power projects in Himachal Pradesh).

The summary on the petition and the judgement can be found in below mentioned points:

• The Association through petition requested before APTEL that the State Commission has erroneously included electricity procured through banking (banked energy) for the calculation of Average Pooled Power Purchase Cost (APPC) for FY 13-14.
• The Association argued that such inclusion of Banked energy in the determination of APPC leads to an artificially reduced APPC, which is threatening the Renewable Energy Generators in the state.
• After hearing all the respondents, the Tribunal dismissed the appeal of the Association saying that the state commission has legally and correctly included the banked energy in the determination of the APPC for FY 13-14, citing regulatory reasons in support of the method followed by the state commission.

This order also gives a detailed insight into what is Banking of Energy, and its effect on calculation of APPC.

The more details on the APTEL judgment can be accessed here.

Our previous blog post on Himachal Pradesh APPC can be read here.

Contributed By: Dheeraj Babariya