Ch Babu Rao, a state executive member of the CPM, was adamantly against Southern Power Distribution Corporation Limited’s (SPDCL) plan to buy solar and wind energy from Axis Energy Ventures Private Limited for Rs 4.60 per unit for the next 25 years.
Babu Rao contended during a public inquiry conducted by the Andhra Pradesh Electricity Regulatory Commission (APERC) in Kurnool on Friday that this agreement would subject customers to an enormous financial burden of Rs 14,186 crore. In his thorough 30-page complaint, he urged Thakur Ram Singh, the chairman of the APERC, who oversaw the hearing, to reject the plan completely and revoke all associated agreements with Adani and the Solar Energy Corporation of India (SECI).
Babu Rao questioned why identical plans were being revived, stating that APERC had rejected them seven years before. He called the projected tariff of Rs 4.60 per unit unjustified and ridiculous, pointing out that solar electricity is available at Rs 2 per unit.
He blasted the state administration for already putting residents through Rs 15,485 crore in extra expenses over the previous nine months, despite having pledged lower energy rates before the election. He also bemoaned the Chief Minister’s insistence on keeping the SECI and Adani deals in place, arguing that they will cost Rs 1.20 lakh crore over a 25-year period.
He cautioned that if this plan is approved, agreements for 10,000 MW of electricity at exorbitant prices may result.
The head of the CPM said that the government had misled the people by using a four-hour peak demand to support exorbitant, round-the-clock energy purchases.
He recommended using the state-owned APGenco to produce solar and wind energy at a reasonable cost and called for transparent open bids for the purchase of electricity.
Additionally, he denounced as an assault on democratic dissent the threats used by authorities to bring criminal charges against opponents.