Subsequently, in accordance with the Third Transfer Scheme notified by GoAP, APTransco has ceased to do power trading and has retained with powers of controlling system operations of Power Transmission
When APSEB came into existence in 1959, APSEB started functioning with the objectives of maintaining the power sector efficiently and economically simultaneously ensuring demand meets the supply.
During the last decade inadequate capacity addition and low system frequency operation of less than 48.5 Hz for more than half a decade considerably reduced the power supply reliability.
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.
HIGH LEVEL COMMITTEE AND ITS RECOMMENDATIONS
Government of Andhra Pradesh realizing the declining tendency of the financial position of APSEB and considering the Government of India's Liberalized policy for attracting private investment into power sector, set up a high level committee in January 1995 to look into present working of the APSEB and suggest remedies for improvement. The committee after detailed deliberations with all the concerned and critical analysis submitted the report in which it suggested some recommendations.
Government of Andhra Pradesh considering the recommendations made by committee had embarked upon the AP Electricity REFORMS ACT in 1998.As a sequel the APSEB was unbundled into Andhra Pradesh Power Generation Corporation (APGENCO) & Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) on 01.02.99. APTRANSCO was further unbundled w.e.f. 01.04.2000 into "Transmission Corporation" and four "Distribution Companies" (DISCOMS).
From Feb 1999 to June 2005 APTransco remained as Single buyer in the state -purchasing power from various Generators and selling it to DISCOMs in accordance with the terms and conditions of the individual PPAs at Bulk Supply Tariff (BST) rates. Subsequently, in accordance with the Third Transfer Scheme notified by GoAP, APTransco has ceased to do power trading and has retained with powers of controlling system operations of Power Transmission