The Hindu Business Line : Power trading to be transferred to discoms in AP

CONSEQUENT on the mandate of the Electricity Act 2003 on creation of `multi-buyer markets', power trading activity in Andhra Pradesh would be transferred to discoms (distribution companies) from Transmission Corporation of Andhra Pradesh (APTransco) with effect from June 10.The deadline for such transfer is June 9.

The State Government would issue a Gazette notification on June 9 in this regard. The APTransco has been the single buyer in the State. It procures power from various generators such as APGenco, Central generators and independent power producers and resells the same to the four discoms for retailing to consumers. This is in addition to its task of transmitting power.

Addressing a press conference here on Tuesday, Mr K. Rosaiah, Minister for Finance, said the State had no go but to accept Centre's advice on this count.

"We have requested the Centre to consider extending the deadline at least by six months if not a year. But, it has refused to extend," he said.

The Centre had said that the mandate applied to all States where Electricity Boards had been restructured.

The transfer of trading would not lead to increase in tariff, he said. He also said that there would not be any tariff differences among the four discoms. The quantum of subsidy to individual discoms might vary.

The subsidy would be used as a balancing mechanism. Besides, the PPAs (power purchase agreements) with private players would also be transferred.

With regard to non-conventional sources of power, they would be transferred to respective discoms.

The move would help increase efficiency and accountability among the discoms, the Minister said. The generation capacity allocated to discoms based on demand in their respective areas of operation. The eastern discom would get 16.89 per cent, southern one 22.83 per cent, central one 43.42 per cent and northern discom would get 16.86 per cent.

The Minister said the Government had examined other options like creation of a trading company and diversifying trading activities in favour of APGenco. "After examining available options, we have chosen the current option," he said.

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