Assam: AERC urges BVFCL, APDCL to facilitate 12-MW power-purchase agreement

Staff Reporter

Guwahati: The Assam Electricity Regulatory Commission (AERC) has urged Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) and Assam Power Distribution Company Limited (APDCL) to arrive at an understanding on the final tariff for the sale of 12 MW of power by the former to the latter. This will enable both BVFCL and APDCL to finalize the medium-term power purchase agreement (PPA). Following a hearing of both BVFCL and APDCL, the Commission has asked APDCL to submit a detailed analysis of the power shortfall during the year, the quantum purchased during that period, the exchange average buy rate, power sold during off-peak time, and the exchange rate. Following the submission of the detailed cost-benefit analysis at the APDCL board of directors meeting, it will be submitted to the Commission.

The order by the AERC follows a petition submitted by BVFCL for approval of a 3-year power purchase agreement (PPA) and final tariff for the sale of 12 MW of power from the grid-connected captive power plant of BVFCL to APDCL.

BVFCL asked for a tariff of Rs 7.29 per unit, which is their net cost of generation of electricity, but APDCL replied they would be able to pay a maximum of Rs 5.87 per unit. The AERC has directed both parties to have a joint sitting and arrive at a mutual settlement of the PPA, and the process is to be completed within a period of two weeks.

During the hearing, BVFCL said that the total capital cost of the 12 MW plant is more than Rs. 79 crore, which includes the captive power plant (old capital cost), new investments, major overhauling, etc.

BVFCL prayed before the Commission to approve the PPA with the respondent (APDCL) with a final tariff of Rs. 7.29 per unit.

On the other hand, APDCL also stated that the minimum tariff ceiling shall be Rs 4.82 per unit, which consists of the average power purchase cost of all gas-based thermal stations, including state transmission utility (STU) and central transmission utility (CTU) charges. The maximum ceiling tariff was quoted at Rs 5.87 per unit, which consists of the average power purchase cost of all stations with STU and CTU charges.

BVFCL submitted that, after the provisional PPA, they have already incorporated huge capital investments for maintenance and smooth running of the generating units. The petitioner mentioned that, in the last hearing held on May 22, 2024, APDCL submitted the average buy rate of thermal as Rs 6.41 per unit with CTU charges. Now that APDCL has submitted the maximum ceiling tariff of Rs 5.87 per unit, BVFCL has expressed its inability to supply power at this rate.

 Also Read: CM Himanta Biswa Sarma Orders Inquiry into Misconduct by APDCL Team During Disconnection Drive (sentinelassam.com)

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