The Haryana State electricity distribution utilities have moved the Appellate Tribunal For Electricity opposing a tariff hike for electricity supplied from Adani Power’s 4,620-MW station at Mundra.

“We have approached the tribunal saying we do not agree with the compensation tariff. Though, we would continue our discussion in the committee formed for the issue,” said a senior official at the Haryana Power Generation Corporation Ltd.

The Haryana utilities’ decision has come after elaborate Chief Minister-level discussions.

It is not known immediately if the second buyer of electricity from Adani’s Mundra station, Gujarat, has also taken a similar step.

On April 3, the Central Electricity Regulatory Commission (CERC) had offered a ‘compensation package’ to cover the rise in cost of electricity production for Adani’s Mundra plant. The regulator had ordered the formation of a committee within a week that would suggest the various measures that can be taken up. The panel was asked submit its report to CERC by April 30.

However, the committee was formed much after April 30 and the discussions are yet to begin.

Haryana discoms get 1,424 MW at Rs 2.94/kWh (Rs 0.977/kWh as capacity charge and Rs 1.963/kWh as the energy charge).

The power producer had signed two power purchase agreements (PPAs) with Gujarat for 1,000 MW each. One at levelised tariff of Rs 2.3495 per kWh and another at a rate of Rs 2.89 per kWh.

The power plant was sourcing coal from Indonesia. On September 23, 2010, the Indonesian Government decided that minerals from the country would have to be sold at benchmark price. The benchmark price is calculated on a monthly basis.

This led to higher coal prices and Adani Power said that cost of production of electricity from Mundra Power Plant had increased ‘tremendously’.

According to the company, it has become commercially unviable to supply power to the utilities at the tariffs decided earlier.

siddhartha.s@thehindu.co.in

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