Draft Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions for short-term procurement/sale of power) Regulation, 2021

Nov 25, 2021 | by TeamLease RegTech Legal Research Team

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Industry Specific Compliance

The Andhra Pradesh Electricity Regulatory Commission (APERC) on November 24, 2021 has issued the Draft Andhra Pradesh Electricity Regulatory Commission (Terms and Conditions for short-term procurement/sale of power) Regulation, 2021.

The foremost provisions of the Draft are as followed:

• Monthly Power Procurement Plan

By the 10th of every month, each licensee shall separately communicate to SLDC its estimation of demand for each block of 15 minutes duration for the immediately following month. SLDC after assessing the demand based on its own estimate for the State as a whole vis-a-vis demand communicated by all the licensees and availability of power from all the approved sources (after taking into account the maintenance schedules of generating stations, transmission constraints, generation and transmission capacities likely to be added in the next month) shall communicate to the licensees the power required to be procured by each of them on a short-term basis for the following month within three working days from the date of receipt of demand estimations from the licensees. Upon receipt of the communication from SLDC, the licensees shall float tenders on the national DEEP e-bidding portal to procure the power communicated by SLDC. Within three working days of the close of the bidding, the licensees shall place before the Commission the details of the quantum of power and prices offered by each of the bidders in response to their tenders along with the licensees’ analysis on the bids received and also the quantum of power and the prices at which they intend to purchase the same. After analyzing the above information, the Commission will communicate its decision on whether to proceed with the procurement and if so, the quantum of power and the prices at which the power should be procured and the conditions, if any, to be complied with by the licensees. Based on the above approval, the licensees shall place necessary orders on the successful bidders.

• Weekly Power Procurement Plan

By the Wednesday of every week, SLDC after assessing the demand based on its own forecast for the whole State and availability of power from all the approved sources including the availability of power from the sources on a short-term basis under the monthly power procurement plan and after taking into account the maintenance schedules of generating stations, transmission constraints, generation and transmission capacities likely to be added in the next week, shall communicate to the licensees the short-term power requirement for the immediately following week. The licensees may procure power as communicated by the SLDC in the TAM (Term Ahead Market) from the exchanges. All such weekly purchases shall be got ratified by the Commission. 

• Day-ahead Power Procurement Plan 

Every day by 10 AM, SLDC after assessing the demand based on its own forecast all over the State and availability of power from all the approved sources including the availability of power from the sources on a short-term basis under monthly & weekly power procurement plan after taking into account the maintenance schedules of generating stations and transmission constraints shall communicate the power requirement for the next day to the licensees. The licensees may procure power as communicated by the SLDC in the DAM (Day-Ahead Market). All such Day Ahead purchases shall be got ratified by the Commission. 

• Bilateral contracts 

Under no circumstances, the licensees shall purchase energy through bilateral contracts except from the sources expressly approved by the Commission. For example, those sources where the PPAs have expired and procurement of power from them leads to an overall reduction of purchase costs by the licensees, if the licensee(s) desire(s) to procure power from such sources, they shall first approach the Commission with the proposal at least 15 days in advance before the date of commencement of power procurement. The Commission will then examine the proposal of the licensee(s) case by case and grant approval, if necessary, after considering all the relevant factors. 

Sale of Surplus power: 

The licensees shall make all efforts to sell the surplus power (conventional/RE Power) that is available during certain time blocks/periods through the exchanges and DEEP E-bidding portal if such sales lead to the reduction of overall power purchase costs by the licensees. 

• Power to relax time limits 

The Commission may relax the time limits specified in this Regulation for various activities for sufficient reasons to be recorded in writing. 

• Powers to remove difficulties 

If any difficulty arises in giving effect to the provisions of this Regulation, the Commission may, by general or specific order, make such provisions not inconsistent with the provisions of the Act, as may appear to be necessary for removing the difficulty. 

• Power to amend 

The Commission may, at any time, add, vary, alter, modify, delete or amend any provisions of this Regulation. 

• Power to dispense with the requirement of the Regulation 

The Commission shall have the power, for reasons to be recorded in writing and with notice to the affected parties, to dispense with the requirements of any provision of this Regulation in a specific case or cases subject to such terms and conditions as may be specified. 

Before the preparation of this draft Regulation, the Commission felt it necessary to seek the suggestions of the experts on the short-term procurement and accordingly it has constituted an expert committee to study and offer their suggestions on various aspects related to short-term power procurement. The Committee submitted its report in March 2021. On examining the report, the Commission decided to make the Regulation. 

 


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