Hyderabad: TS and AP have installed capacity of thermal power stations of over 2,800 MW each but they are running at 60 per cent and 70 per cent of their capacity. Experts attributed this ‘backing down’ of generation to power purchase deals signed in haste by the governments with private power producers. “They have to pay the private power producers whether they use the power or not. The governments should go for transparent competitive bidding and sign agreements with clauses such as ‘power utilisation only when needed’,” said Mr M Venugopal Rao, president of Centre for Power Development. “Backing down of power generation will result in power becoming costlier, the consumer having to foot it, as the plant operational cost remains almost the same,” he said.
Another expert said while there are long-term PPAs in AP, the power utilities in TS had gone for long- and short-term agreements. “The TS power utilities are buying expensive power from private power producers at '5 per unit against '4 at the Genco thermal plants. The governments should seriously look into the issue of PPAs being signed by power utilities,” he said. APGenco managing director K. Vijayanand brushed aside these allegations. “Backing down is a temporary phenomenon.
Every state goes for backing down of thermal plants for over-hauling and repair and to improve functioning,” he said. TSGenco chairman D. Prabhakar Rao said “some people” demanded 24x7 power supply at all costs but when it was supplied they talked about backing down. “The PPAs are made keeping in view the power forecast. The TSGenco has taken up construction of thermal power plants. This would not be done without a long-term plan,” he said.
