Andhra Pradesh government received a setback in the ongoing PPAs (Power Purchase Agreements) issue between both the Telugu States. The Andhra Pradesh Electricity Regulatory Commission has confirmed that Andhra Pradesh can not unilaterally cancel the PPAs with out its approval. The Commission also clarified that APGENCO can not withdraw the PPAs unilaterally. The ERC confirmed that there is nothing in the law that unapproved PPAs will not be valid.
ERC also said that since Power is being purchased according to these PPAs (even unapproved) since 2002,so there will not be a question of those being invalid. ERC had finally stated that if APGENCO needs to cancel some of the PPAs it has to do it with the consent of Telangana GENCO. So now, according to Andhra Pradesh Reorganization Act, Telangana will get 52.12% of total power produced by these projects while Andhra Pradesh will get the remaining.
This judgement of the commission will bring a lot of respite for Telangana state which is reeling under the pressure of severe power cuts. On the other side, Andhra Pradesh will be disappointed as it will peg back the state from its goal of becoming a power surplus state. We will have to see what Chandra Babu will do in this issue going further.
