The electricity distribution companies (discoms) of Andhra Pradesh have approached the state’s electricity regulator to lower the rates at which it procures wind power. The discoms want to change the parameters used to determine the tariffs of wind power plants in the state, which would result in lower tariffs.
The state-owned companies claimed that a shift in market dynamics and technological interventions does not justify the Rs 4.84-per-unit tariff — determined through the earlier mechanism — anymore and has “resulted in unjustified burden on the consumers of the state”.
For the calculation of wind tariffs, the discoms want the normative capacity utilisation to be increased to 26.5% from 23.5%, the return on equity to be considered at 14%, down from 16% set earlier. The rate of interest considered for calculating wind tariff should be 9.23% instead of the 12.76% determined by the regulator earlier, the discoms claimed.
