CERC Finds Rs 3.60/kWh as the National Average Power Purchase Cost

By Ayush Verma/ Updated On Fri, May 10th, 2019

The APPC shall be applicable during FY 2019-20 and until further orders for the purpose of deviation settlement in respect of the open access and captive wind and solar generators fulfilling the requirement of regional entities.

National Average Power Purchase Cost

The Central Electricity Regulatory Commission (CERC) has found the Average Power Purchase Cost (APPC) at the national level to be Rs 3.60/kWh for the financial year 2019/20. The commission has now invited comments from stakeholders on the proposition, and have provided until May 28, 2019.

The commission calculated the national APPC by computing the average of APPC of all States and Union Territories, weighted by volume of conventional power purchased by the respective State/UT. The data for approved purchase cost and volume of power for FY 2018-19, from the respective FY 2018-19 tariff orders of the states were used for the calculations.

“Based on the tariff orders issued by the SERCs/JERCs for FY 2018-19, the APPC at the National level has been worked out as Rs. 3.60/kWh. It is proposed that APPC shall be applicable during FY 2019-20 and until further orders for the purpose of deviation settlement in respect of the open access and captive wind and solar generators fulfilling the requirement of regional entities,” the commission issued in its order.

The total cost of power purchase considered for computation of APPC didn’t include the cost of generation or procurement from renewable energy sources and transmission charges. Since, exclusion of the cost of generation or procurement from renewable sources was in alignment with the objective of determining APPC, which is to ascertain the average cost of power from conventional sources of electricity.

CERC revealed their calculation for the determination of the APPC. The total volume of power procured (X) from non-renewable energy sources was 10,92,930 MUs and the total cost of power procured (Y) from non-RE sources stood at Rs 3,94,164. Thus, the Average Cost of power comes out to (Y*10/X) Rs 3.60/kWh.

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