Adani, Tata Power to approach Ministry today on tariff issue

Our Bureau Updated - September 01, 2014 at 10:23 PM.

Adani Power and Tata Power have approached the Power Ministry to resolve their dispute on compensatory tariff with the various State distribution utilities on electricity sold from their Mundra plants.

The two companies are set to meet officials of the Power Ministry on Tuesday and seek the Centre’s help pressing upon Gujarat, Haryana, Maharashtra, Rajasthan and Punjab not to challenge the Central Electricity Regulatory Commission (CERC) before the Appellate Authority.

In February, the CERC had allowed Tata Power and Adani Power to charge a higher tariff after the Indonesian Government levied a higher royalty on coal exports from the country. Adani Power’s Ultra Mega Power Project and Tata Power’s Coastal Gujarat Power Ltd (CGPL) at Mundra use Indonesian coal.

The State distribution utilities – Maharashtra, Haryana, Rajasthan and Punjab – had challenged the CERC order in the Appellate Tribunal for Electricity (APTEL). But, in July, APTEL allowed an increase of 52 paise per unit for CGPL and 41 paise per unit for Adani.

The order was again challenged by the State discoms in the Supreme Court following which the apex court put a stay order.

“Producers and buyers may contest on foreign exchange rate variation, effective date for recovery of compensatory tariff, station heat rate and revenue share for sales above normative availability under the respective power purchase agreements,” said a source.

Power producers will also ask the Ministry of Power to get discoms to agree on APTEL’s decision on compensatory tariff and withdraw the appeal from the apex court.

Apart from this, the power producers also want the Central Government to issue an ordinance and bring a change in the Competitive Bidding Guidelines which would allow for changing of tariff in the Power Purchase Agreement period due to unforeseen events like the Indonesian Government hiking royalty on coal exports.

Published on September 1, 2014 16:53