Andhra Pradeshhas saved around Rs 2,350 crore by purchasing electricity in spot markets at cost effective prices in the last two years, i.e., 201920 and 202021.
Thepower utilitiesprocured 3,393 million units in 2019-20 and 8,890 MU in 2020-21 from the open market at cheaper prices.
The Average cost of procurement, including transmission charges, was Rs 3.12 per unit against the approved weighted average procurement cost of Rs 4.55/unit.
The had persuaded theUnion ministry of powerto surrender the 625 MW thermal power, which helped the AP discoms to reduce their financial burden to the tune of Rs 1,007 crore.
The central power grid used to collect central transmission utility point of connection charges from the discoms on the anticipated usage on a quarterly basis in the past. Due to the same, the utilities had to pay higher charges to the central grid. In response to the protest of the AP energy department, the CERC has changed the methodology, resulting in Savings of Rs 350 crore in last two years.