Transco seeks deletion of naphtha as fuel from its PPA with GVK
The Andhra Pradesh Electricity Regulatory Commission (APERC) has turned down a request made by the APTransco (Transmission Corporation of Andhra Pradesh) seeking deletion of Naphtha as supplementary fuel and other fuels (LSHS, Furnace Oil and others) as alternate fuels from the power purchase agreement it entered into with the GVK Industries Ltd.
The Commission said it could not entertain the request of the petitioner (APTransco) which is not acceptable to the respondent (GVK Industries) as it goes contrary to the terms of conditions of the PPA entered into between the two sides. The APERC, after an elaborate study of the case, concluded that the PPA did not allow for unilateral amendment as being sought by the APTransco.
In its recent orders, the regulator said the petitioner contended that due to the high costs of Naphtha, it would not like the GVK Industries to utilise Naphtha even when there is shortage of gas. The respondent had been declaring the availability of the project to generate power using Naphtha as and when there was insufficiency in the quantities of natural gas and the petitioner had accepted all such declarations.
The APERC observed that the power utility itself had directed GVK to generate power using Naphtha from its Jegurupadu plant. The Commission which studied the generation pattern by the GVK said the sparing use of Naphtha only for nine days in a span of five years showed that they were not inclined to use the fuel due to its high cost. “But due to unavoidable circumstances, it has dispatched the station to generate with Naphtha as and when there is shortage of gas only in public interest,” the Commission’s order said.
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