APTransco’s decision to purchase power in the spot market by quickly estimating the aftereffects of the nationwide lockdown has resulted in a net savings of Rs 56 crore for the month of March-2020.
As per an official release from SECM, Dept. of Energy, I&I, GoAP the Transco took the strategic decision to shift to the option of buying power in the spot market where the prices hovered to more or less Rs 2 a kWhr rather than from the power plants to reduce the financial burden.
According to officials, on an average 14 MU to 20 MUs per day was purchased from the power exchanges in March-2020. This accounted to a total of 357.22MUs and the prices were ranging between Rs 2.04 to 2.64 per unit. “With this the per unit average procurement cost from the exchange is Rs 1.57 less than the average power procurement cost allowed by the APERC. This has resulted in the net savings of Rs. 56 crore in March-2020. And we are closely monitoring the rates on a daily basis,” energy secretary Mr.Srikant said.
“This shows the commitment of State government to save public money and spend it judiciously.’’
—Mr.BalineniSrinivas Reddy, Minister for Energy, Forest and Environment.
Transco JMD Mr KVN ChakradharBabu was entrusted to see three wings of AP Power Coordination Committee (APCC)(Finance, Commercial and technical) operate in close cooperation. AP is among the few States that saved huge public money in power purchases during the present crisis said the release.
Officials said that the nationwide ‘janata curfew’ gave a firsthand indication of how the grid demand in the state would fall and they could sense the steep fall in demand, corresponding fall in revenue collections and the market scenario due to the lockdown.
“The APTransco team under the guidance of energy secretary and Transco CMD Mr.SrikantNagulapalli got into quick action in making estimates of the aftereffects of the lockdown and took steps to reduce the power procurement cost and minimize the losses to utilities,” ChakradharBabu said.
In fact, the call of Prime Minister to switch off the lights also gave further indications of how much would be the domestic loads, he said. The peak demand of the state shifted from 11,000MW to 8,500MW and the minimum demand is pegged at 6000MW instead of 8000MW during normal times due to the lockdown during which all bulk consumers like the industries, railways, commercial establishments, HT consumers etc., were shutdown.
On other hand, according to MD APGENCO B Sreedhar, the thermal stations utilized the opportunity and increased the coal stocks of 13Lakh Metric Tons as on date which would be sufficient for 21days.
Minister for Energy, Forest and Environment Mr.BalineniSrinivas Reddy appreciated the efforts of power utilities for providing quality uninterrupted supply and purchasing power at lower price. “The State government saved around Rs.500 crore in power purchases few months ago and Rs 180 crore in coal transport tenders. Now the utilities have saved Rs 56 crore in power purchases. This is the commitment of State government to save public money and spending it judiciously,” he said.