Andhra Pradesh: Election Commission to take call on power tariff

In an indication to over 2.5 crore power consumers that their electricity bills are going to rise once again because of elections, the Andhra Pradesh Electricity Regulatory Commission (APERC) has written to the Election Commission of India regarding whether they can issue an order for a proposed revised power tariff by the end of March.
“The APERC had written to us for revision of power tariff as they are also covered under the Model Code of Conduct. We have sent the letter to the head office. A decision on this issue is likely to come in a few days,” said Andhra Pradesh Chief Electoral Officer Bhanwar Lal.
The APERC sought the revision of tariff following submission of an Annual Revenue Requirement for the financial year 2014-2015 by all four Discoms (power distributing companies) last December.
In the Aggregate Revenue Requirement (ARR), the discoms had proposed a hike in power tariff that would burden consumers to the tune of `9,340 crore.
Except for the farmers, the proposal would have an impact on all categories of consumers in the state.
The distribution companies (discoms) had sought the hike citing a huge gap between average cost and revenue realisation.

HC comes down heavily on MahaGenco over coal sampling

In a major setback to the Maharashtra State Power Generation Company Limited, the Bombay High Court recalled its earlier order for independent third party sampling of coal at loading and unloading points.

MahaGenco had been banking heavily on sampling reports which had indicated poor quality of coal supplied by Western Coalfields Limited and it had also supported the Central Institute of Mining and Fuel Research's findings, while WCL and CIL had claimed that these were flawed, as well as violated statutory norms.

After a 2 day marathon hearing of a PIL, a division bench of Nagpur bench consisting of Justice Mr Bhushan Gavai and Justice Mr CV Bhadang decided to refrain from making any observation about correctness of the method, the procedure adopted for collecting samples, its preparation and the final analysis, due to complicated facts unveiled during the hearings, raising a question mark over everything.

The High Court came down heavily on MahaGenco for turning the PIL into adversarial litigation by blaming WCL for supplying sub-standard coal and creating an impression that due to poor quality coal supplied by CIL and its subsidiaries like WCL, power generation was affected and seriously impacted environment.

The court was persuaded to pass an order directing sampling at loading and unloading point by the CMIFR. The court expressed deep anguish that precious public money was spent for this exercise.

Source – PTI

APTEL suggests financial restructuring of BSES discoms

The Appellate Tribunal for Electricity (APTEL) on 11-03-2014 said financial restructuring of BSES discoms would help in making their business sustainable with minimum burden on the consumers. Besides, it has asked the Delhi Electricity Regulatory Commission (DERC) to decide on roadmap for liquidating the discoms' regulatory assets. The commission last week proposed a road map for payment of Rs.8,000 crore and interest to the three discoms run by Reliance and Tatas.
The APTEL's latest move provides succour for the two discoms—BSES Rajdhani and BSES Yamuna—which has been seeking liquidation of accumulated arrears.


The directive came on petition filed by the two discoms which supply power in nearly 70% areas in the city. In a separate order, the tribunal recalled last month's directive that restrained DERC from taking any "coercive action" against BSES discoms like suspension of their licenses without its nod.
Meanwhile, the tribunal has said that financial restructuring would be helpful in sustaining the business of the discoms. "We feel that in view of large regulatory assets which have been accumulated over the years, financial restructuring of the distribution licensees will be very helpful in sustaining the business of the licensees with minimum burden on the consumers," the tribunal said in an order on Tuesday.
According to the tribunal, DERC shall again take up the matter with Delhi government for early decision on the financial restructuring of the discoms to "minimise the burden on the consumers on account of increase in retail supply tariff due to liquidation of the regulatory assets".
The tribunal said that DERC has to decide a roadmap for liquidation of the accepted regulatory assets keeping in view the interests of the consumers as well as that of discoms.
In the absence of any financial restructuring by the state government, the tribunal said the consumers could not be left at the mercy of the generating companies and the distribution licensees to manage the power supply in the national capital at their own will.
In that case, DERC may follow its own roadmap to remedy discoms' finances, it added.
As per the tribunal, the problem is to be examined in terms of meeting the current expenses and avoiding further accumulation of the regulatory assets as well as "liquidation of the approved regulatory assets as at end of FY 2011-12." "We welcome the order of APTEL directing DERC to take an early decision for liquidation of the huge accumulated arrears owed to the Delhi discoms," BSES spokesperson said in a statement.
"APTEL has clearly directed DERC to ensure sustainability of the business of the discoms. DERC has already proposed last week a roadmap for payment of over Rs.8,000 crore and interest thereon owed to the discoms," he added.

Source - Mint 

Karnataka tops in harnessing power from small hydro projects

The state produces 4,332 Mw from renewable sources with wind energy contributing the highest proportion of 53 per cent while sugar factories contribute 17 per cent.

The all India figure stands at 25,845 Mw including that of Karnataka, said Karnataka Renewabale Energy Development Ltd (KREDL) Project Engineer D K Dinesh Kumar today.

Addressing an interactive session on energy conservation, renewable energy and domestic gas organised by the Mysore Chamber of Commerce & Industry (MCCI), in association with the KREDL here, he said the Karnataka Electricty Regulatory Commission had recommended Rs 7.20 per unit to those who give back solar energy to the grid.

Individuals and private parties can set up solar plants up to 5 Kw and wheel back excess solar power to the grid after meeting their own requirements.

After the state cabinet's approval, it would be effected by the Chamundeswari Electricity Supply Company (CESC) and other service providers.

The peak hour load between 7 am and 8 am in the mornings and in the evenings when power consumption was the highest was imposing a heavy pressure on the electricity supply companies, resulting in power cuts.

Every year, consumption was rising during these peak hours, and last year the increase was 1,200 Mw, he said, urging for the need to switch over to solar power by consumers as solar power can be used for varied purposes including cooking.

Hence, installation of solar power units had been made mandatory for all constructions on plots that are 30'x40' or bigger across the state.

About 1,800 Mw power can be saved in Karnataka through renewable energy sources.

The latest technologies, he said, would help increase generation of more wind powder and it cost Rs 10-12 crore per machine.

Meanwhile, explaining the various renewable energy opportunities, he said subsidy offered by the state and Centre ranged between 30 per cent and 75 per cent, depending upon the projects being taken up.

All the 601 'Nemmadi Kendras' (public service centres) were connected with solar power and 166 of them were in Mysore region alone.

A number of institutions in the state had taken to solar power generation for their own use like mass cooking, he said calling on power consumers to take advantage of the schemes promoted by the KREDL and help the state mitigate the power shortage.

Source : Business Standard