HP proposes to reduce its APPC

HP state electricity board has proposed to reduce the current APPC ( Average pooled cost of power purchase ) of Rs. 2.20 per unit to Rs. 1.98 per unit, i.e. a reduction of APPC by flat 10 %. HPSEBL while demanding a new methodology asserted there are three kinds of banking arrangements namely contra banking, forward banking and return banking that needs consideration while computing APPC for a financial year . The following are the definitions as made available in the petition by HPSEB –

Certain quantum of energy out of total purchase is banked during the year and the same quantum is received back during the same year is called contra banking.

Certain quantum of energy is borrowed from other DISCOMs during the year which is to be returned in the subsequent year is called forward banking.

Quantum of energy sold during the year under forward banking will be received back in the next year is called return banking.

HPERC in previous APPC order has considered only the forward banking purchase and did not consider the contra banking. According to HPSEBL, banking purchase by means of any kind of banking is definitely a source of power which evidently must be considered for calculation of APPC.

Such a proposal by HPSEBL to reduce the APPC is being regarded by many RE generators in the state as a negative development as it would languish the APPC + REC model.

For copy of proposal Click Here .