APERC Approves Lower Pooled Power Purchase Cost Than Discom Proposal

Amaravati, May 2 (KNN) The Andhra Pradesh Electricity Regulatory Commission (APERC) has determined the pooled cost of power purchase at Rs. 5.17 per unit for FY 2024–25, to be applicable for FY 2025–26 under the state’s Renewable Power Purchase Obligation (RPO) regulations.

The order follows petitions by Southern Power Distribution Company of Andhra Pradesh, Central Power Distribution Corporation of Andhra Pradesh, and Eastern Power Distribution Company of Andhra Pradesh, which had proposed a pooled cost of Rs. 5.22 per unit. After reviewing procurement data, the Commission approved a lower rate.

The pooled cost represents the weighted average price of electricity procured from long-term conventional sources during the previous year, excluding renewable energy and liquid fuel-based generation. It is capped at the lower of the weighted average cost or the average market purchase rate.

Timelines, Adjustments and Compliance Directions 

APERC noted a delay of around six months in the submission of petitions beyond the September 30, 2025 deadline, but condoned it as there were no stakeholder objections and no financial impact on consumers. A public notice issued in March 2026 also received no responses.

The Commission reduced the proposed cost after excluding certain procurement expenses, including those related to central generating stations without approved power purchase agreements.

The approved rate is lower than the average market purchase rate of Rs. 6.69 per unit reported by the discoms. APERC has directed that differences between provisional payments and the revised cost be settled with developers in three equal monthly installments starting May 2026.

The order, issued under the leadership of P.V.R. Reddy, also directed discoms to adhere to timelines, with the next submission deadline set for September 30, 2026.

(KNN Bureau)