Andhra Pradesh would be flush with uninterrupted power supply throughout the year 2015-16. This is the first time in the country that a state government has declared availability of surplus power after ensuring 24×7 supply to domestic, commercial and industrial consumers. According to the ARR plan, 100 per cent power supply from Krishnapatnam and Hinduja thermal power stations located in AP will contribute to the massive surplus.The inference from this assertion in the report is that AP will not part with any power it generates from Krishnapatnam and Hinduja power plants as is being demanded by Telangana
Andhra Pradesh state power utilities on Tuesday submitted the Annual Revenue Requirement (ARR) plan to the AP Electricity Regulatory Commission (APERC). In the plan, the utilities said they will have a surplus of 11,087 million units during the coming financial year.Contrary to earlier indications, the tariff hike proposals will be submitted at a later date after getting the state cabinet nod on February 2. According to sources, chief minister Chandrababu Naidu refused to give his approval to the tariff hike when energy officials Ajay Jain and K Vijayanand met him in the Secretariat on Tuesday .The CM told them that he would discuss the matter in the cabinet meeting..
The ARR submitted by the Discoms showed a revenue gap of Rs 7,716 crore in which the state government might share over Rs 5,000 crore as subsidy for the agriculture sector. While the ARR is Rs 30,038 crore, the projected revenue from the current tariff works out to Rs 22,592 crore. AP Discoms estimated that the energy requirement for the entire year would be 58,191 million units of which 54,884 mu will be procured from long term sources leaving a deficit of 3,307 mu. At the same time, Discoms have already en tered into agreements to pur chase 14,394 mu power to ensure uninterrupted power supply .
The discoms submitted that they incurred a loss of Rs 2,004 crore due to repeal of Fuel Surcharge Adjustment (FSA) during 201314. As a result, the cost of power increased from Rs 5.19 per unit to Rs 5.99 including 10 per cent inflation, it said.
As reported in Times of India