GERC Determines Average Pooled Power Purchase Cost (APPC) For FY 2023-24

The Gujarat Electricity Regulatory Commission (GERC) issued an order regarding the determination of the Average Pooled Power Purchase Cost (APPC) for the financial year 2023-24. This process is based on the provisions of the GERC’s 2014 regulations, which require that the APPC be determined annually. The APPC refers to the weighted average cost at which a distribution licensee purchases electricity, excluding renewable energy sources. It is a key factor in determining the price that distribution licensees must pay for the electrical component of renewable energy projects registered under the Renewable Energy Certificates (REC) scheme.

Previously, the Commission had determined the APPC for FY 2021-22, which was applicable for FY 2022-23. For the current year, the Commission reviewed data and determined the APPC for FY 2022-23, which will be applicable for FY 2023-24. Since the state’s distribution licensees purchase electricity from various sources at different prices, the APPC is determined separately for each licensee. However, for certain licensees such as Jubilant Infrastructure and Aspenpark Infra, their power purchases were already made from state distribution licensees, so a separate APPC was not calculated for them. Additionally, the Deendayal Port Authority (DPA) did not submit its application for tariff determination on time, so its APPC calculation is still pending.

The Commission reviewed the power purchases made by various licensees, including Gujarat Urja Vikas Nigam Limited (GUVNL), Torrent Power Limited (TPL), and others. The total gross power purchase for the state during FY 2022-23 amounted to 1,34,223.05 million units (MUs). After accounting for deductions, such as purchases from renewable sources like wind and solar, the net power purchase was determined to be 1,17,210.20 MUs. The APPC rates for different licensees varied, with GUVNL’s APPC set at Rs. 5.41 per unit, TPL-Distribution at ₹6.77 per unit, and other licensees having their own rates.

The order concludes by confirming the APPC for FY 2023-24 for different licensees, ensuring that the rates are fair and reflective of the costs incurred. The order emphasizes the importance of accurate and timely submissions of tariff applications to ensure smooth operations in the power sector.

This order is crucial for ensuring that distribution licensees and renewable energy projects operate under fair and transparent pricing mechanisms, promoting the continued integration of renewable energy into the state’s power grid.