The Andhra Pradesh Electricity Regulatory Commission (APERC) has directed the distribution companies to give power to the closed ferro alloy plants who have not cleared their bills.
Andhra Pradesh Ferro-alloys Producers’ Association (APFPA) had urged the State government to supply power to their units on subsidy and save them as the distribution companies were not hearing their request and insisted to clear all the bills. Even when the plants were not in operation the distribution companies were raising 85 per cent consumption charges and were issuing bills at the rate of 6,701 units per kva every year. Out of the 32 ferro alloy plants only four plants were in operation. An examination was done by the APERC, which stated that these industries cannot consume 85 per cent power as they were not operational and raising the bills is not logical.
High power tariff and lack of support from the government were bane of the ferro alloys units in Andhra Pradesh, but the decision by the State Government to supply power to their units, and also at a subsidized rate has given a relief to this industry.
Many ferro alloy plants in Andhra Pradesh were shutdown due to heavy losses. With this regulation from APERC it is a great help for the ferro alloy industry as power is the most essential source for the ferro alloy units.
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