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APDisComs purchase regularly from the energy exchange, etc. to meet the peak load and energy shortages. As the power purchases/sales are done on daily basis without proper planning and optimum utilization of APGENCO power generation capacity, APERC has given guidelines to the DisComs for implementation while making short term (less than one year duration) purchases and sales in the year 2022.
The government reforms in power sector led to the formation of APGENCO on 28 December 1998 and commenced operations from 1 February 1999. [2] The imbalance of the revenues against the cost of production, no significant reduction in technical losses and energy thefts, high cost purchases from IPP's, other SEB's gradually worsened the financial position of APSEB.
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The government of Andhra Pradesh enacted the AP Electricity Reforms Act in 1998. As a result, in early 1999 the existing company, APSEB, was unbundled into Andhra Pradesh Power Generation Corporation Limited (APGENCO) and Transmission Corporation of Andhra Pradesh Limited (APTRANSCO).
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