The Hindu Business Line : BMEDA shutdown to protest tariff cut by APERC

THE non-conventional energy generators in the State will close down their units for three days from midnight of March 31 in protest against the AP Electricity Regulatory Commission (APERC) reducing the tariff rates to Rs 2.40 per unit from Rs 3.48 per unit in the latter's tariff order for 2004-05, according to the Bio-Mass Energy Developers Association (BMEDA) President, Mr G. Ramesh.

Mr Ramesh told newspersons here on Monday that there were about 85 wind, hydel, biomass and cogeneration units in the State producing 370 MW of power per annum. All these units would be shut down for three days.

Earlier, BMEDA representatives also took out a procession demanding that either the tariff rates should be increased or the Government should take over their units paying back the investments made by them.

Office bearers of BMEDA reiterated that new tariff rates were unviable and they would not be able to operate their units. The State Government should at least implement the recommendations of the Union Ministry of Non-Conventional Energy Sources (MNES). The MNES had recommended a tariff rate of Rs 2.25 per unit with the base year 1994-95 and 5 per cent escalation in the tariff per year since then.

They said that the Transmission Corporation of AP had submitted to the APERC that even at Rs 2.27 per unit, the biomass power plants were viable. If that is the case, "we request APTransco to take over all the biomass power plants in the State and return back our investments," they added.

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