It is important to note that as per the CERC(Deviation Settlement Mechanism and related matters) Regulations, 2014,? “APPC rate decided by the CERC is applicable to the wind or solar generators that are regional entities and selling power under open access, which is not accounted for RPO compliance of obligated entities, and for captive power plants where PPAs do not exist, settlement shall be done at APPC determined at the national level.” In pursuance of this provision, the Commission is required to determine the national level APPC.
Following the trend of the last few years, CERC again increases the APPC for FY 2021-22 compared to the previous year. As shown in the Graph below, the CERC approved APPC rate has been increasing every year by 1-3%.
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“(a) It does not have any power purchase agreement for the capacity related to such generation to sell electricity at a preferential tariff determined by the Commission; and
(b) It sells the electricity generated either (i) to the distribution licensee in the State of Tamil Nadu at a price not exceeding the pooled cost of power purchase, or (ii) to any other licensee or to an open access consumer at a mutually agreed price, or through power exchange at a market-determined price.”
With these specifications, the commission declared the Pooled Cost of Power Purchase payable by the TANGEDCO for the year 2018-19 as Rs.3.97 per unit subject to the maximum of 75% of the preferential tariff fixed by the Commission to that category / subcategory of NCES generators i.e. Rs.3.97 per unit or 75% of the preferential tariff fixed by the Commission to that category / subcategory of NCES generators, whichever is less. The Order came into effect from 1st April 2018.
The trend of the pooled cost of power purchase in Tamil Nadu in the past years is as given below.
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The definition of the APPC being followed by APERC can be read as –
‘Pooled Cost of Power Purchase (PCPP)’ means the weighted average pooled price at which the distribution licensee has purchased electricity in the previous year from all the long-term energy suppliers excluding the purchases based on liquid fuel. Provided that the purchases from traders, short-term purchases and purchases from renewable sources shall not be taken into account while determining Pooled Cost of Power Purchase.
AP’s APPC definition is not in sync with that of CERC as it excludes power purchases from suppliers based on liquid fuel, Purchases from Traders, short term purchases and purchases from Renewable sources.
The APPC for FY 14-15 has been calculated as Rs. 3.38 per unit.
The APPC is AP has been growing steadily with a CAGR of 7.91%.
The order by APERC can be found here.
Our previous Blog posts on APPC of other states can be Read here.
Contributed by – Dheeraj Babariya
]]>The definition of APPC followed by HPERC can be read as –
The weighted average pooled price at which the Distribution Licensee has purchased the electricity including cost of self generation, if any, in the previous year from all the energy suppliers, long-term and short-term, but excluding those based on renewable energy sources, as the case may be.
HPSEB has proposed the APPC as Rs. 2.24 against the current APPC of Rs. 2.17, and has requested to approve the same APPC for FY-14-15 effective from 01 April 2014.
A copy of the proposal can be found by clicking here.
Our previous blog post on Himachal Pradesh APPC for FY 13-14 can be read here.
Blog post on all other states APPC can be read here.
Contributed by – Dheeraj Babariya
]]>for the purpose of these regulations ‘Pooled Cost of Purchase’ means the ?weighted average pooled price at which the distribution licensee has purchased the ?electricity including cost of self generation, if any, in the previous year from all the energy ?suppliers long-term and short-term, but excluding those based on renewable energy ?sources, as the case may be.”
i.e. it excludes only renewable energy for APPC rate calculation.
Accordingly the APPC for FY15 has been determined as Rs. 2.66 per unit (up by 5.13% as compared to APPC FY14).
APPC for FY14 was Rs. 2.53 per unit.
More details can be had on Page no. 63 of this Retail Tariff Order.
]]>In the interim, since ESCOMs will take some time in finalizing power purchase quantum and cost of FY15, the commission has set up Rs. 3.14 per unit as an interim APPC rate to be effective from 1st April 2014 to 30th June 2014. It is expected that by end of June, a new and final APPC rate for FY15 will be declared.
Karnataka, therefore becomes the first state in current FY to declare APPC for FY15. The APPC rates in Karnataka have had an increasing trend, which is good specifically for RE generators wanting to explore REC markets in the state.
A gazetted copy can be accessed here.
KERC had also invited comments and suggestions for finalization of APR Fy13 and ARR of FY15 filed by discoms and KPTCL. The public hearing was scheduled to be conducted during end of April 2014 as per notice.
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Gujarat announced 10% of energy procurement to come from renewable sources, for its obligated entities for FY17.
The year-wise RPO targets effective April 2014 are tabulated below:
GERC also introduced the definition of APPC which was hitherto missing. Average Power Purchase Cost (APPC) for the purpose of REC Mechanism is in line with that of CERC and is defined as –
‘Average Power Purchase Cost’ means the weighted average pooled price at which the distribution licensee has purchased the electricity including cost of self generation, if any, in the previous year from all the energy suppliers long-term and short-term, but excluding those based on renewable energy sources, as the case may be.’
In addition, GERC also clarified that a RE project registered under REC mechanism selling power under captive or third party mode will receive payment equal to APPC for excess injection after off-setting its own consumption, from the discom.
The present order on amendment can be accessed here.?
The principal RPO regulations of 2010 can be read here.?
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Before going in to the details, it is pertinent to note the definition of APPC being followed by Rajasthan –
“Pooled Cost of Power Purchase: The weighted average price at which the distribution licensee has ?purchased the electricity including cost of self generation, if any, in the previous year from all the energy ?suppliers, excluding short term power purchases and those based on renewable energy.”?
Unlike other states Rajasthan excludes short-term power purchases also, along with renewable power purchases.
JdVVNL petition for finalization of APPC FY13 –
RERC had finalized a provisional tariff of Rs. 2.75 per unit for FY13 as per its order dated 11th Jan 2013. Whereas, in the current petition based on audited accounts JdVVNL has asked for approval of Rs. 2.6713 per unit as per audited accounts of FY12.
Comment invited by 5th March 2014.
JVVNL petition for finalization of APPC FY14 –
In case of JVNNL, RERC has been asked to finalize the APPC of FY14 as Rs. 3.0865 per unit as per audited accounts of FY13.
Comments invited by 28th February 2014.
Our previous blogpost on Rajasthan APPC can be read here.
Blogposts on all other states APPC can be read here.
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Accordingly the APPC for FY 2013-14 is finalized to be at?Rs. 3.28/unit.
The following can be read on the payment adjustment issue –
“The difference between the provisional pooled cost of power?purchase @ Rs 2.69/kWh (of FY 2011-12 considered for FY 2012-13) and the?pooled cost now determined shall be paid to the developer in six equal?monthly installments.”
All relevant orders on APPC in other states can be accessed here.
Our previous coverage on APPC of FY 2012-13 in Andhra Pradesh can ?be accessed here.
The present order can be read?here.
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RERC in an order dated 2nd Nov, 2011 had determined the APPC of Rajasthan to be Rs. 2.57 per unit on provisional basis.?In the petition filed , ?the Jodhpur DISCOM, as per audited accounts for FY11 has worked out the APPC of FY 2011-12 to be Rs. 2.7350 per unit. Comments on the same were invited by RERC no latter than 15th Oct 2013. This increase in APPC if finalized will be 6.42 % higher than that declared previously.
The working excel on the same can be accessed on the home-page of RERC – ?http://rerc.rajasthan.gov.in/.
It will be pertinent to note that RERC, unlike most states, in its definition of APPC, excludes short term power purchase also along with renewable energy. APPC in Rajasthan is defined as –
“The weighted average price at which the distribution licensee has purchased the electricity including cost of self generation, if any, in the previous year from all the energy suppliers, excluding short term power purchases and those based on renewable energy.”
APPC for FY 2012-13 can be known by clicking?here.
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