Facilitating Competitive Transmission Tariffs: Andhra Pradesh’s New Regulatory Framework

In a bid to enhance competition and optimize transmission tariffs for the benefit of consumers, the Andhra Pradesh Electricity Regulatory Commission (APERC) has introduced the Andhra Pradesh Electricity Regulatory Commission (Threshold Limit for the Development of Intra-State Transmission Projects under Tariff-Based Competitive Bidding) Regulation 2024. This regulation stems from a directive by the Hon’ble Supreme Court urging State Electricity Regulatory Commissions (SERCs) to frame regulations under Section 181 of the Electricity Act, 2003. Aligning with national policies and Ministry of Power (MoP) guidelines, the regulation aims to promote competitive bidding for intra-state transmission projects. By leveraging tariff-based competitive bidding (TBCB) and setting threshold limits, APERC seeks to foster competition, minimize transmission tariffs, and ultimately benefit consumers. This notification was published on May 17, 2024.