Development of Power Sector in Andhra Pradesh (With reference to Performance of APEPDCL)

Volume-5, Issue-6, December-2015 International Journal of Engineering and Management Research Page Number: 539-544 Development of Power Sector in Andhra Pradesh (With reference to Performance of APEPDCL) Dr. K.V.S. Prasad Sr. Assistant Professor, Department of EEE, GMR Institute of Technology, RAJAM, Srikakulam District, Andhra Pradesh, INDIA ABSTRACT Andhra Pradesh State Electricity Board (APSEB) similar to other SEBs in the country, was formed on 01 April, 1959 under the provisions of Electricity (Supply) Act 1948, had been responsible for power generation, transmission, and distribution and for the overall development of the power sector in A.P. Andhra Pradesh State Electricity Board was restructured as Andhra Pradesh Power Generation Corporation (APGENCO) to look after generation and Andhra Pradesh Power Transmission Corporation (APTRANSCO) to look after transmission and distribution and sale of electricity in the state of Andhra Pradesh from 01.02.1999. The Eastern Power Distribution Company of AP Limited (APEPDCL) came into existence from April 1 st, 2000 as a result of dismantling of vertically integrated Andhra Pradesh State Electricity Board (APSEB) into functionally distinct entities undertaking Power Generation, Transmission and Distribution. The present study aims primarily to evaluate the profile and performance of APEPDCL. The study also focuses on the origin and development of power sector in Andhra Pradesh. Keywords--- APEPDCL, Power Sector, Sale of Energy, Revenue I. INTRODUCTION The power sector has registered significant progress since the process of planned development of the economy began in 1950. Hydropower and coal based thermal power have been the main sources of generating electricity. Nuclear power development is at slower pace, which was introduced, in late sixties. Indian power sector is witnessing major changes. Growth of power sector in India since its independence has been noteworthy. Over the years, Andhra Pradesh has been experiencing severe power shortages and more than half of the additional capacity being established in Andhra Pradesh is from Independent Power Producers who need to finalize financial closures with national and international financiers for securing adequate finance for their projects. These developers have, in the past, been seeking resource to a State Government guarantee and Central Government counter-guarantee to cover the Andhra Pradesh State Electricity Board s (APSEB) payment obligations. However, given the sheer magnitude of the power purchasing liability, and the existing constraints on the state s financial resources, which are expected to persist over the near and medium term, it is inconceivable that the comfort of guarantees as above can continue to be extended. It, therefore, became imperative to radically restructure the APSEB to convince financiers and lending agencies, of its financial sustainability over the medium and long term. In line with these developments, the State Legislative Assembly has enacted the Andhra Pradesh Electricity Reforms Act, 1998, which has received the President s assent and has become effective from February 1, 1999. Under the provisions of the Reforms Act, APSEB will initially be restructured into two functionally focused entities Andhra Pradesh Generation Corporation Limited (APGENCO) for generation activities and Transmission Corporation of Andhra Pradesh Limited (TRANSCO) for transmission and distribution activities. To provide functional autonomy and transparency, GENCO and TRANSCO are incorporated under the Companies Act. II. OBJECTIVES OF THE STUDY The present study aims: To study the evolution of power sector in Andhra Pradesh. To give a brief profile of APEPDCL. 539 Copyright 2011-15. Vandana Publications. All Rights Reserved.

To highlight the achievements and future plans of APEPDCL. To study and analyze the performanceof APEPDCL. III. RESEARCH METHODOLOGY This study is based on the secondary data which is collected from the various reports and websites of APTRANSCO, APEPDCL, Ministry of Power (GoI), research papers, journals, magazines, periodicals, newspapers and internet etc. IV. POWER SECTOR IN ANDHRA PRADESH In Andhra Pradesh, private energy establishments started to supply power from the middle of 1950 s to Visakhapatnam, East Godavari and West Godavari districts. In Krishna District, Vijayawada and Machilipatnam were electrified in 1930 and 1933 respectively while Guntur was electrified in 1932, Narasaraopet in 1936 and Ongole in 1937. APSEB has started to supply electricity to all these places since 1959. Private Power Establishments had supplied Electricity to Nellore from 1934, Thermal Power Station from 1950, Machkund from 1956 and Tungabadra from 1965. Though low electric supply had been provided to Anantapur from Mysore since 1933, it got gradually improved by 1953. Electricity was supplied to Hindupur from 1958 and to all taluks of Anantapur from 1965. Electricity from Private Sector was first provided to Proddutur in 1936 in Cuddapah (Now called Kadapa) District; later Hydel Power was supplied from Tungabadra in 1957, while Pulivendula, Badvel and Rajampet were electrified in 1955, Kamalpuram in 1957 and Nandyal in 1960. By 1965 all the towns in Cuddapah with L.T. and H.T. had been supplied power. Government took over electric supply to Kurnool from Jog falls in 1946. Markapur and Cumbum had been provided electricity from the diesel power stations established in 1957, Srisailam was electrified by 1963, and by 1965 power was extended to 216 villages. In Chittor a private power supply company brought power from Vellore to Chittor and by 1965 hydel power stations of Tungabadra started supplying power to the entire district. Power supply had enormously increased to Hyderabad from 35,000 K.W. to 72,000 K.W. by 1966. Extension of power to villages was started in 1956 reaching 221 villages by March 1967. Nizamabad had power supply from 1933 with its extension to Nizamsagar in 1962. Adilabad had been supplied power from Sirpur Paper Mill Ltd. from 1956-57, till it was connected to Ramagundam Thermal station in 1960-61. Medak had no power supply until 1952-53, which was supplied by Rural Electrification Corporation in 1955 and by March 1960 the entire district had been provided with power supply. Nalgonda had no power supply until 1957. Warangal was electrified in 1936 getting power supply from Azamshahi Mills, later from Kothagudem Super Thermal Station with its four stations at Warangal, Janagam, Mylaram and Marripeda. Khammam had been electrified in 1950, when a Diesel Power Station was established it was later connected to Kothagudem Thermal Station. Another Diesel Power Station was established in 1950 in Karimnagar to supply electricity, which waslater connected to Ramagundam in 1957. Mahabubnagar had been supplied electricity from Narayanapet during 1935-36, till APSEB took over it in 1958-59 with three small diesel generators, extending power supply to all taluk headquarters by 1960-70. V. ANDHRA PRADESH STATE ELECTRICITY BOARD (APSEB) Andhra Pradesh State Electricity Board (APSEB) similar to other SEBs in the country, was formed on 01 April, 1959 under the provisions of Electricity (Supply) Act 1948, had been responsible for power generation, transmission, and distribution and for the overall development of the power sector in A.P. But, due to various unpredicted and undesired reasons, the power sector in A.P. had got deteriorated. However with the implementation of reforms recommended by Hitten Bayya Committee (1995) and later with the comprehensive report A.P. Agenda for Economic Reforms (1997) suggested by the World Bank, the dwindling state of APSEB has got set right. Andhra Pradesh State Electricity Board was restructured as Andhra Pradesh Power Generation Corporation (APGENCO) to look after generation and Andhra Pradesh Power Transmission Corporation (APTRANSCO) to look after transmission and distribution and sale of electricity in the state of Andhra Pradesh from 01.02.1999. APGENCO is engaged in the business of generation of electricity apart from the execution of the ongoing and new power projects under capacity addition programme and taking up renovation and modernization works of the old power stations. The installed capacity of APGENCO as on 01.04.2009 was 6087.5 MW comprising 2962.5 MW thermal, 3132 MW Hydro and 2 MW wind power stations and contribute about 60 per cent of the total power system demand. APGENCO occupies the third position in India as far as the thermal power generation is concerned with a plant load factor of 86.3 percent. Further, unbundling of APTRANSCO into APTRANSCO and 4 Distribution Companies (APEPDCL, APSPDCL now it is TSSPDCL, APCPDCL and APNPDCL now it is TSNPDCL) under Second Transfer 540 Copyright 2011-15. Vandana Publications. All Rights Reserved.

Scheme was notified by the Government vide G. O. Ms. No. 35; Energy (Power-III) dated 31 st March, 2000. VI. PROFILE OF APEPDCL Following the advent of power reforms in the country, The Eastern Power Distribution Company of AP Limited (APEPDCL) came into existence from April 1 st, 2000 as a result of dismantling of vertically integrated Andhra Pradesh State Electricity Board (APSEB) into functionally distinct entities undertaking Power Generation, Transmission and Distribution. It is initially formed as a wholly owned subsidiary of Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) under the provisions of Companies act1956, subsequently the entire equity held by APTRANSCO was transferred to GOAP as a part of initiative by the State Government to disengage APTRANSCO from Power trading activity in strict compliance of the provisions of the Electricity Act 2003. This company is engaged in the business of Power distribution and retail power supply in its designated area covering five northeastern districts of Andhra Pradesh. This company is operating under a license issued by Hon ble AP Electricity Regulatory commission to undertake Power distribution and retail power supply in its licensed area; as such the activity of this company is a licensed business. APEPDCL is responsible for undertaking distribution and bulk supply of power in the operation circles of Srikakulam, Visakhapatnam, Vizianagaram, East Godavari and West Godavari districts and 20 Divisions of Coastal Andhra Pradesh. The Corporate Office and Headquarters of APEPDCL is situated at Visakhapatnam. Objectives of APEPDCL: To engage in the business procurement, supply and distribution of electricity. To take over the distribution and supply of electricity business from the Transmission Corporation of Andhra Pradesh Limited. Acquire establish construct and operate electrical lines for the purposes of distribution and supply of electrical energy and associated sub-stations. Plan, investigate and prepare Project Reports, Business Plans and strategy for documentation and forecast customer demand and sources of purchase of power. To utilize the distribution network and other infrastructure facilities of the company. Vision of EPDCL: To ensure reliable, efficient and sufficient power supply to consumers. To ensure a balanced all-round development of power infrastructure in all circles of operation. To ensure operational efficiency through managerial, functional autonomy and technological up gradation. To focus on customer care and customer service in all spheres of activities with reference to quality, sustainability and cost. To reduce to overall energy losses to 90% Future Plans of APEPDCL: Integration of customer database with GIS for all 29 towns of APEPDCL for better linkage between customer and network elements i.e., pole, distribution transformer, feeder and sub-station. HT Metering Information Management Systems (MIMS), an in house application under development for tracking Metering Installation for HT Consumers. Strengthening transmission and distribution infrastructure. Conducting a special drive against Electricity Pilferage. Key Achievements during 2013-14 The company achieved distribution losses of 6.33% as against 6.46% during previous year (2012-13). This is the lowest in APEPDCL history. The company recorded AT&C losses of 7.09% which is the lowest for APEPDCL so far as against 10.49% last year (2012-13). It is also the lowest for any state owned DISCOM in the country The Company achieved Metered Sales of 81.28 %, 19 Nos. 33/11KV Outdoor Sub-stations were completed and charged under T&D scheme. Under HVDS system 951 Nos. smaller capacity DTRs have been erected for conversion of 1782 Nos. pump sets into HVDS with an expenditure of Rs.11.78 Crs Under phase-ii, 42 Nos. 33KV Interlinking lines of total length 430.03 KM proposed with an estimated cost of Rs.25.25 Crs for which works awarded and under progress. Under 33 KV feeders/interlinking lines, 1No feeder of total length 4 KM charged. Electrification of 57 Nos. habitations was completed. Further the works awarded for electrification of 183 Nos habitations in VSP & 11 Nos in SKLM circle. VII. PERFORMANCE OF APEPDCL 541 Copyright 2011-15. Vandana Publications. All Rights Reserved.

TABLE-1 DISTRICT-WISE SUB-STATIONS OF APEPDCL AS ON 31.07.2014 Name of the District 33/11 KV 132 KV 220 KV Total Srikakulam 84 8 1 93 Vizianagaram 83 6 1 90 Visakhapatnam 144 15 5 164 East Godavari 144 12 4 160 West Godavari 196 14 4 214 Total 651 55 15 721 Source: website of APEPDCL (www.apeasternpower.com) An attempt is made to point out the District-wise sub-stations of APEPDCL. Table-1 shows that the substations of APEPDCL according to the District wise as on 31.07.2014. Among the total five districts, there are total 651 sub-stations of 33/11 KV, 55 sub-stations of 132 KV and 15 sub-stations of 220 KV. Among all the Districts, West Godavari District occupies first place with 196 substations, followed by Visakhapatnam and East Godavari District with 144 sub-stations each. Srikakulam District has occupied third place with 84 sub-stations and Vizianagaram District has last position with 83 substations in EPDCL as on 31.07.2014. District TABLE-2 CATEGORY-WISE SERVICES OF APEPDCL AS ON 31.07.2014 L.T.Category I II III IV V VI VII VIII H.T. Total L.T. + H.T. Total Srikakulam 669497 51277 3718 403 26628 4213 6163 0 239 762168 Vizianagaram 546075 42266 2794 193 31757 4872 4582 19 230 632788 Visakhapatnam 1108460 125690 5094 386 23838 12959 6666 0 1005 1284098 East Godavari 1228675 115484 9060 841 41867 10269 14103 8 793 1421100 West Godavari 960019 94553 11702 212 88037 9190 11970 5 538 1176226 Total 4512726 429270 32398 2035 212127 41503 43484 32 2805 5276380 Source: Annual Reports of APEPDCL from 2004-05 to 2013-14 Table-2 presents the overall picture of categorywise services as 31.07.2014. As can be seen from the table, there are 4512726 service connections under category-i. Out of them, East Godavari District has 1228675 service connections and occupies first place, followed by Visakhapatnam District has 1108460 service connections; West Godavari District has 960019 service connections and Srikakulam District has 669497 connections. Vizianagaram District has last position with 546075 service connections. Whereas H.T. service connections are concerned, Visakhapatnam District occupied the first place with 1005 service connections followed by East Godavari District with 793 service connection and West Godavari District with 538 service connections. It is interesting to note that the domestic i.e. category-i service connections of APEPDCL registered maximum service connections, followed by category-ii and category-v. TABLE-3 CATEGORY-WISE SALE OF ENERGY OF APEPDCL DURING 2004-05 TO 2013-14 (MU) Category 2004-2005- 2006-2007- 2008-2009- 05 06 07 08 09 10 2010-11 2011-12 2012-13 2013-14 Domestic 1706.26 1842.79 2007.3 2226.7 2436.5 2730.5 1 8 1 4 2926.75 3142.03 3207.30 3425.95 Non-Domestic 320.60 355.76 400.12 454.28 507.11 571.83 628.41 696.92 686.38 704.08 Industrial 346.03 352.60 382.52 401.82 392.77 393.55 411.92 534.55 551.78 593.34 Agriculture 1309.39 1223.89 1246.8 1328.3 1508.4 1868.3 6 2 9 1 1451.90 1820.65 1534.06 1736.26 Other LT 181.42 204.74 209.92 230.85 256.00 290.68 294.13 303.91 317.11 281.00 L.T. TOTAL 4246.7 4642.0 5100.8 5854.9 3863.70 3979.78 (A) 3 5 8 1 5713.11 6498.06 6296.63 6740.63 H...T.RESCOs 117.40 125.20 135.01 146.35 162.02 183.82 186.12 212.49 212.00 235.31 542 Copyright 2011-15. Vandana Publications. All Rights Reserved.

2886.5 3261.8 3429.3 H.T. 2271.24 2466.63 1 7 0 H.T. TOTAL 3021.5 3408.2 3591.3 2388.64 2591.83 (B) 2 2 2 7268.2 8050.2 8692.2 Total (A+B) 6252.34 6571.61 5 7 0 Source: Annual Reports of APEPDCL from 2004-05 to 2013-14 3829.8 1 4013.6 3 9868.5 4 4435.02 5015.28 5395.30 5461.37 4621.14 5227.77 5607.30 5696.68 10334.2 5 11725.8 3 11903.9 3 12437.31 Table-3 depicts category-wise sale of energy of APEPDCL during 2004-05 to 2013-14. The APEPDCL sold 6252.34 MU during the year 2004-05. The units sold constantly increased over a period of time and touched 12437.31 MU in the year2013-14. The LT consumers on the whole consumed 3863.70 MU in the year 2004-05, which increased to 6740.63 MU in the year 2013-14. Out of the total units sold to LT consumers, the units sold to domestic consumers increased from 1706.25 MU in 2004-05 to 3425.95 MU in 2013-14 and stood first under LT category, followed by agricultural category from 1309.39 MU to 1736.25 MU from the year 2004-05 to 2013-14. HT RESCOS consumed 117.40 MU during the year 2004-05 and increased to 235.31 MU in the year 2013-14. It can be inferred from the above table that the sale of energy to HT category is high followed by domestic and agricultural categories during the study period from 2004-05 to 2013-14. TABLE-4 CATEGORY-WISE REVENUE FROM SALE OF POWER OF APEPDCL DURING 2004-05 to 2013-14 (RS. IN CRORES) Category 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Domestic 365.88 382.57 436.10 491.67 546.81 607.14 676.67 738.24 942.60 954.70 Non- Domestic 182.88 202.48 226.48 261.67 291.72 314.64 375.13 428.01 490.94 612.65 Industrial (LT) 153.81 143.08 154.91 167.74 164.52 160.71 186.79 258.65 328.85 383.13 Agricultural 42.56 5.17 5.10 4.30 4.35 4.96 1.25 4.97 5.50 1.97 Other LT 37.86 42.35 43.84 47.24 52.95 54.61 59.31 77.67 106.67 151.05 HT RESCOS 10.12 8.87 8.87 8.44 11.40 12.24 12.20 16.22 27.53 26.95 HT 900.75 985.79 1102.51 1200.20 1321.66 1437.13 1800.71 2067.04 2871.12 3338.78 Total 1693.86 1770.31 1977.81 2178.26 2393.41 2591.44 3112.05 3590.80 4773.21 5469.23 Source: Annual Reports of APEPDCL from 2004-05 to 2013-14 An attempt was made to establish the Categorywise Revenue from Sale of Power of APEPDCL during 2004-05 to 2013-14. Table- 4 shows that the total revenue from sale of power of APEPDCL was 1693.86 crores in 2004-05. This has registered a consistently increasing trend throughout the period of study. The revenue has increased to 5469.23 crores in 2013-14. Out of the total revenue, high tension supply consumers contributed the highest revenue throughout the study period. It was 900.75 crores in 2004-05 and increased to 3338.78 crores in 2013-14. The share of domestic category has gone up from 365.88 crores to 954.70 crores during the study period. The revenue share of non-domestic category has increased from 182.88 crores in 2004-05 to 612.65 crores in 2013-14. It is interesting to note that the revenue from agricultural category in 2004-05 was 42.56 crores and 1.97 crores in the year 2013-14. The revenue from Other LT categories like public lighting, general purpose and temporary services is very low and gradually increased during the study period. The revenue from HT RESCOS is 10.12 crores in 2004-05 and it gradually increased to 26.95 crores in the year 2013-14. It can be inferred from the above table that the revenue from HT category is high followed by domestic and non-domestic categories and very low from agricultural sector during the study period from 2004-05 to 2013-14. VIII. CONCLUSION Among all the Districts operating by APEPDCL, West Godavari District occupies first place with 196 substations, followed by Visakhapatnam and East Godavari District with 144 sub-stations each. Srikakulam District has occupied third place with 84 sub-stations and VizianagaramDistrict has last position with 83 sub-stations in EPDCL as on 31.07.2014. It is interesting to note that the domestic service connections (Category-I) of APEPDCL registered maximum service connections, 543 Copyright 2011-15. Vandana Publications. All Rights Reserved.

followed by category-ii and category-v. The the sale of energy to HT category is high followed by domestic and agricultural categories and the revenue also from HT category is high followed by domestic and non-domestic categories and very low from agricultural sector during the study period from 2004-05 to 2013-14. REFERENCES [1] Parameswara Sharma. D., Chandramohanan Nairb. P.S., Balasubramanianc. R., Performance of Indian power sector during a decade under restructuring: a critique$, Energy Policy Vol.33, pp.563-576, 2005. [2] Ramachandra Murthy. K. V. S., Ramalinga Raju. M., Electrical Energy Loss in Rural Distribution Feeders- A Case Study, ARPN Journal of Engineering and Applied Sciences, Vol. 4, No. 2, April 2009. [3] Saranga Pani. B., Sreekumar. N. and Thimma Reddy. M., Power Sector Reforms in Andhra Pradesh: Their Impact and Policy Gaps, GAPS Series, Working Paper 11, 2007. [4] Shukla. P.R., Debashish Biswas, Tirthankar Nag, Amee Yajnik, Thomas Heller and David G. Victor, Impact of Power Sector Reforms on Technology, Efficiency and Emissions: Case Study of Andhra Pradesh, India, Working Paper#20, 2004. [5] Thimma Reddy. M., Developments in Power Sector in Andhra Pradesh, Centre for environment Concerns, Hyderabad, Paper presented at the Andhra Pradesh Economic Association Annual Conference, Chittoor, 2003. [6] Thimma reddy. M., Power and Agriculture Crisis in Andhra Pradesh, Centre for Environment Concerns, Hyderabad. [7] Annual Reports of APEPDCL from 2004-05 to 2013-14. [8] Annual Reports of Ministry of Power, Government of India. [9] Web site of Ministry of Power, Government of India(www.powermin.nic.in). [10] Website of APEPDCL (www.apeasternpower.com). [11] Website of APTRANSCO: (www.aptranscorp.com). 544 Copyright 2011-15. Vandana Publications. All Rights Reserved.