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In less than 24-hours, after the Andhra Pradesh Electricity Regulatory Commission issued orders, the AP government retaliated sharply and announced on Tuesday that it is “rejecting” the orders issued by the APERC on Power Purchase Agreements (PPAs).The AP government is of the view that the APERC has no administrative or legal jurisdiction to issue such orders as it actually seized to exist after both Telangana state and AP issued orders for formation of its own ERC’s on July 26 and August 1 respectively.  

However, the AP government’s decision will complicate the issue of PPAs further between both the states. A senior official in APERC said,  “Both Telangana  and AP only issued orders for formation of ERCs. These ERCs are not functional as on date. Hence, APERC is still existing. There should not be any void in regulatory process.” The APERC will meet on Wednesday to discuss on the AP’s retaliation.

Parakala Prabhakar, advisor (Communications), to government of Andhra Pradesh said as per the  AP Reorganisation Act-2014, the existing APERC shall function as the joint regulatory body for a period of not exceeding six months, during which the successor Electricity Regulatory Commissions of both states shall be formed.

Source-On Request