Vijayawada: AP Energy Department Secretary Nagulapalli Srikanth urged the people to reduce consumption of power between 6 pm and 10pm in the State. These four hours stopping the use of ACs would help the State to save 10 million units a day.

Currently, the State has been purchasing power at a rate of Rs 13 to14 from the market. Energy Secretary speaking to the media persons on Saturday said that the Government is taking all measures to avoid the power cuts in the State. Though there has been an increase in demand for power, the supply has been hit due to the international coal crisis which is also having a impact on the State, he said.

Thermal power units under GENCO, which has a capacity of 80 million units, have been generating only 40 to 45 million units a day due to the shortage of coal. Andhra Pradesh with no collieries has been procuring the required coal from Singareni Collieries and Coal India Limited.

He explained that as per its green energy policy the State has not executed any power purchase agreements (PPAs) with thermal power plants and it has PPAs only with wind and solar energy plants. To meet the energy demand, it was relying on market purchases, which were being done on a need basis.

Power is purchased on an hourly basis and payments are made on the spot. The surge price is normally high during peak load hours (6 pm. to 10 pm). Prices have been exponentially increasing over the past one month. On September 16^th, 40 million units were purchased for Rs 4.60 per unit and on September 17^th, 50 million units were purchased at Rs 5 per unit.

The cost per unit increased to Rs 6 on September 19^th and to Rs 8.20 on September 28^th. It further increased to Rs 9.40 on September 30^th and by October 4^th it leaped to Rs 13 per unit. On October 5^th, the unit cost of power in the market was Rs 14.60, he added.