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Thursday 27 December 2012

Industries ready to pay more to get power

27th December 2012 10:20 AM
    Hyderabad: The industrial sector is all set to get a 'pay-more-get-power' offer, with the government mooting an 'expensive power' policy. Distribution companies (discoms) have proposed to supply the needed power to industries, though at a higher price, and the proposal has already been submitted to the AP Electricity Regulation Commission (APERC). The APERC sought the opinion of the industry on the new policy by December 31.
Under the new policy, the discoms will supply power generated using regasified liquefied natural gas (RLNG) to industries on a no-profit basis.
According to sources in the Andhra Pradesh Central Power Distribution Company Limited (APCPDCL), there is shortage of gas from the D-36 site in the state. The gas-based power plants are not operating at their installed capacity due to shortage of RLNG.
Under the new scheme, imported RLNG will be supplied to gas-based plants. The discoms will procure the power from the gas-based Independent Power Producers (IPPs) like GVK Extension ( 220 MW), Gautami  (464 MW),  Vemagiri (370 MW) and  Konaseema  ( 444.08 MW).
The power generated with imported gas cost will be expensive.  "The cost per unit will be above `9. It will change with RLNG rate fluctuations in the market," a top official of CPDCL told Express.
The CPDCL has submitted the new proposal to APERC and if the APERC approves it, then the discoms will go head with operations accordingly.
Under the policy, power will be supplied to willing consumers, over and above the permitted demand limit (PDL) and the permitted consumption limit (PCL). It means the industries that opt for the 'expensive power' will not face any power restrictions.
Purchase of power by discoms under the plan and its supply will be outside the scope of the tariff order, the sources said.
"The APERC examined the proposal in detail. Considering the acute power shortage in the state and to mitigate the problem to the extent possible, a draft Expensive Power Supply Scheme (EPSS) has been prepared," the APERC said. All interested consumers and stakeholders may offer their comments and suggestions on the new policy latest by December 31 to APERC.

THE NEW SCHEME
* Expensive power will be supplied to consumers who opt for it by entering into an agreement with the discom concerned.

* Discoms procure RLNG-based power from gas-based IPPs in the state and supply it to consumers on a no profit basis.

*  If power procurement is less than the requirement, available power will be distributed proportionately amongst all the participating consumers on a pro-rata basis.

* If a consumer fails to utilise the power in a month, it will not be carried forward.

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