Andhra Pradesh Requests SECI, NTPC to Review Tariffs for Few Solar Projects

Andhra Pradesh’s new government has requested NTPC and Solar Energy Corp of India (SECI) to review tariffs for power from 1,650 megawatt of solar projects to Rs 2.44 per unit with hindsight from the time of commissioning of the plants in 2016.

In a letter to NTPC, government-run southern power distribution company of Andhra Pradesh sought revision of tariffs from solar plants in Anantpur district (250 mw) and Kurnool (1,000 mw). The tariff from the Anantpur plant has been fixed by the state's regulator at Rs 5.96 per unit. Bundled power from the solar park in Kurnool was supplied at a weighted average of around Rs 4.61 per unit in 2018-19.

The state’s power distribution companies had signed contracts also with the projects of Acme Solar (150 MW), Azure Power (50 MW), Tata BP Solar (100 MW) and FRV Solar (100 MW) at Rs 4.50 per unit through bidding conducted by SECI.

In separate letters to NTPC and SECI, written on behalf of the state’s power distribution companies, the discom supposed that the tariffs in 2016 were not revealed through competitive process and hence subject to revision. The letters said in the ensuing years, solar tariffs had come down to Rs 2.44 per unit for the entire long-term period and many other states are paying lower tariffs for solar power.

The distribution company said the state’s discoms had faced setback in their financial status because of the high cost of power and were unable to pay the monthly power bills.

“You are requested to reduce the tariff to Rs 2.44/Kwh from the date of commissioning of the project. You are further requested to revise the bills within 10 days that are already submitted and due for payment,” it said, adding: “Otherwise you may submit your view before the high-level negotiation committee which is appointed by the government.”