It was clearly mentioned in the AP Reorganization Bill-2014 that AP and Telangana states have to form their own Electricity Regulatory Commissions (ERCs) within 6 months after division of the state. Hence, both states begin the process of forming their own ERCs.

While issuing notification for formation of the ERC yesterday, AP government made it clear that it will not abide by the existing APERC instructions to continue the existing power purchase agreements (PPAs).

CM Chandrababu Naidu holds a meeting with Chief Secretary IYR Krishna rao, Ajay Jain, the Principal Secretary of Energy Ministry, K Vijayanand, the in-charge CMD of AP Transco and with AP GenCo Managing director yesterday. They have discussed the issue in depth and about the legal complications involved in it. Later, they come to a conclusion that APPRC can’t give any orders to AP government or AP government need not to obey its orders anymore after the state was divided and process for formation of separate PRC is in progress. So, they have decided to challenge its orders either in the High Court or Appellate Authority, if APPRC still stresses to implement its orders.