ANDHRA PRADESH ELECTRICITY REGULATORY COMMISSION

HYDERABAD

 

Dated 21-09-2005

 

Present

Sri K.Swaminathan, Chairman

Sri K.Sreerama Murthy, Member

Sri Surinder Pal, Member

 

O.P.No.15 of 2005

 

 

 

Sanjay Rural Electricity Supply Co-operative Society, Jogipet                                                                 ..            Applicant

 

 

            The Applicant, a Rural Electricity Supply Co-operative Society (hereinafter, RESCO) filed its Annual Revenue Requirement on 30.05.2005 (hereinafter referred to as ‘ARR’) for the year 2005-06.  The said ARR having stood over for consideration till this day, this Commission delivered the following:

O R D E R

1.         Government of Andhra Pradesh (hereinafter, ‘GoAP’ or ‘the Government’) by its order dated 15.10.2004 directed winding up of the applicant-RESCO along with four other RESCOs.  Upon the filing of a writ petition before the Hon’ble High Court, however, challenging the said order of the Government, the operation of the aforementioned order of the Government was stayed. Consequently, the applicant-RESCO sought for extension of its license for distribution of electricity in its area of supply that was earlier granted.  The license was extended till 10.06.2004 by the Commission.  For subsequent period, the Commission after due consideration, granted exemption to the applicant-RESCO under Section 13 of the Electricity Act, 2003, from the requirement of obtaining license to carry on distribution activity in the area of its operation, by order dated 13.06.2005 for  one year from 10.06.2004 to 09.06.2005, extended later on, to 09.06.2006.  In the meanwhile, the applicant-RESCO continued its distribution activity in its area of operation, which falls within the distribution area of the Andhra Pradesh Central Power Distribution Company Limited (hereinafter, APCPDCL) i.e., in the event of the Hon’ble High Court upholding the GoAP order, the applicant-RESCO will merge with APCPDCL. 

2.         While so, APCPDCL at the time of filing of its ARR in November, 2004, for sale of power to consumers within its licensed area for the year 2005-06 in anticipation of merger of the applicant-RESCO, included the applicant-RESCO’s electricity sales data also in its (APCPDCL’s) own estimation of sales.

3.         However, in view of the stay orders of the Hon’ble High Court, APCPDCL cannot supply electricity to the consumers located in the area of the applicant-RESCO which only the applicant-RESCO could do.

4.         During 2004-05, the applicant-RESCO was purchasing power from the APCPDCL for supply to its consumers under the exemption granted by the Commission.  The petitioner and APCPDCL,  by mutual agreement,  propose to continue the same arrangement for purchase of 224.14 MU (million units) of energy at the tariff of 40 paise per unit during 2005-06,  excess drawal,  if any, over and above the said quantity of 224.14 MU by the applicant-RESCO from APCPDCL  being payable at the excess drawal rate of APCPDCL for 2005-06.

5.         On analysis, the Commission finds that the rate at which the applicant-RESCO has agreed to purchase energy is reasonable and acceptable.  Accordingly, therefore, the Commission accords permission to the applicant-RESCO to purchase power from APCPDCL at 40 paise per unit for and up to the quantity of 224.14 MU during the year 2005-06 and any excess drawal of quantity over and above the said 224.14 MU shall have to be paid for by the applicant-RESCO at the excess drawal rate of power purchase applicable to APCPDCL for 2005-06.  The APCPDCL, on its part, shall adjust in its monthly bills raised on applicant-RESCO for the energy supplied to it, the amount of the subsidy awarded to the applicant-RESCO by GoAP.  Ordered accordingly. 

This order is corrected and signed on 21st day of September, 2005.

Sd/-

Sd/-

Sd/-

(SURINDER PAL)

(K. SREERAMA MURTHY)

(K.SWAMINATHAN)

MEMBER

MEMBER

CHAIRMAN

 

 

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