Telangana Sets the Pooled Cost of Power Purchase for FY 2018-19 at ₹4.1/kWh

This tariff rate is equal to the rate in FY 2017-2018, as requested by DISCOMs TSSPDCL and TSNPDCL in their petition


The Telangana State Electricity Regulatory Commission (TSERC) has passed an order stating that the pooled cost of power purchase in FY 2017-18 would be considered again for FY 2018-19 at ₹4.097/kWh (~$0.058/kWh).

The Southern Power Distribution Company of Telangana Limited (TSSPDCL) and Northern Power Distribution Company of Telangana Limited (TSNPDCL) were petitioners in the case.

The DISCOMs had asked the commission to consider the pooled cost of power purchase in FY 2017 – 2018 for FY 2018 – 2019 as allowed under the Electricity Act, 2003. Both the DISCOMs had calculated the average power purchase pooled cost to be ₹4.06/kWh (~$0.057/kWh).

The petitioners argued that after the formation of Telangana in 2014 all regulations, decisions, directions or orders issued by the erstwhile APERC were adopted until any of the regulation were altered, repealed or amended under the jurisdiction of the State of Telangana. This also included renewable power purchase obligations (RPPO), for which the commission issued regulations fixing the RPPO to be met by the obligated entities from FY 2018-19 to FY 2021-22.

The commission stated that, “Pooled cost of power purchase’ means the weighted average pooled price at which the distribution licensee has purchased electricity in the previous year from all the long-term energy suppliers excluding the purchases based on liquid fuel. Provided that the purchases from traders, short-term purchases and purchases from renewable sources shall not be taken into account while determining pooled cost of power purchase.”

The petitioner argued that a renewable energy generator with Renewable Energy Certificates (REC) may conclude a long-term power purchase agreement (PPA) at a “Pooled Cost” determined by state ERC year over year.

It further said that Telangana State Solar Power Policy 2015 and Industrial Policy encourages a solar net metering mechanism and other incentives applicable for a period of 25 years. Therefore, the consumer who adopts the solar net metering mechanism would be paid at the tariff of the “Pooled Cost” determined by the Commission, subject to monthly billing and settlement in a year.

Recently, Mercom reported that the Tamil Nadu Electricity Regulatory Commission (TNERC) has fixed ₹3.97 (~$0.0549)/kWh as the pooled cost of power purchase that the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) will pay to the generators of non-conventional energy sources (NCES).

Nitin is a staff reporter at and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer