Despite an unrelenting power crisis and every sign that the situation is set to get to even worse, the power utilities are reluctant to go in for additional power purchases. Reason being that they find themselves in a financial soup.

The four discoms taken together are running at a loss of Rs 23,000 crore.

The utilities have already incurred a loss of over Rs 1,500 crore in FSA claims for 2008-09 and 09-10, while another Rs 8,000 crore of FSA claims are yet to be approved by the APERC.

Despite the discoms being in grim financial shape, they have no written proof or directions from the state government to go in for additional purchases.

Their past experience in this has not been very encouraging. Now they’re rightly wary.

“Power was purchased at very high rates in the past on the instructions of the state government. As most of these were oral orders, there is no proof with the discoms. In case a part of the FSA claims are turned down again, discoms will plunge into a deeper financial crisis,” explains a senior official.

Last year’s annual agreement with outside generators for 1350 MW power ended in June this year.

Demand was miscalculated

After saying no, in a moment’s miscalculation, the state’s discoms are having to take a U-turn and say yes.

When the Kudankulam power plant was adding capacity, the state had refused additional requirement of power from the plant once generation starts. Of the 2,000 MW capacity that will be available once the plant is commissioned, neighbouring Kerala, Tamil Nadu, Maharashtra and Puducherry booked a major portion.

AP’s discoms had failed to anticipate demand then and have now sought additional power which falls under the unallocated quota of various plants.

“At the time of the capacity addition of the Kudankulam plant, AP was having surplus power, we did not need it then and so we did not go in for advance bookings. Now, we are requesting the ministry of power to give additional allocation from the upcoming projects, like Kudankulam and NLV, which are yet to be commissioned,” said a senior official. Now, however, only a 300 mw unallocated share is remaining from the Kudankulam project, he added.

The state is currently reeling under a shortage of around 2,000 MW of power and gas.

Desam MLA protests with tonsured head

Kaikalur Telugu Desam MLA Jayamangala Venkataramana got his head tonsured in front of the electrical sub-station in protest against increased power cuts in rural areas. He said villagers are spending sleepless nights due to unscheduled power cuts during the night as well.

The MLA staged the novel protest by squatting in front of the sub-station on Saturday. He attributed the present power crisis to the Congress government. He said due to power cuts ranging from 10 to12 hours in villages, most of the villagers, who are daily wage earners, are facing hardship.

The MLA said that there was no power cut during TD regime in 2001-2003 despite drought and no water in the reservoirs. As a result of the current power crisis the prices of essential commodities have shot up and thousands of people have been rendered jobless.

He said that he resorted to this novel way of protest and got tonsured to save the people from the power crisis. TD leaders including Mylavaram MLA Devin-eni Umamaheswara Rao, Gannavaram MLA Dasari Balavardhana Rao and others extended their support.