Economy

Deepak Parekh panel suggests hiking tariff for Adani, Tata power plants

Our Bureau New Delhi | Updated on March 12, 2018

The Commission’s decision to permit a tariff increase will affect consumers of seven electricity distribution utilities in Gujarat, Maharashtra, Rajasthan, Punjab and Haryana.

Private power producers Adani Power and Tata Power may finally get a chance to increase electricity tariff from their respective power plants in Gujarat.

A high level panel headed by Deepak Parekh has recommended increasing tariff for both the imported coal-based thermal stations.

The panel has submitted its report to Central Electricity Regulatory Commission last week. The regulator would seek responses from all stakeholders shortly before giving a go-ahead to the panel’s recommendations, said a senior official at CERC.

In the current scenario, Tata Power may get a ‘compensatory tariff’ of 45-55 paise for its 4,000 MW Mundra plant, while Adani Power may be allowed to increase tariff by 50-60 paise for its 4,620-MW at the same place.

However, these compensatory tariffs are linked to international coal prices and also the revenue generated from the coal mines from where these companies have bought stake and source coal to feed the power plants.

Moreover, a third party auditor would review the compensation every quarter.

The Commission’s decision to permit a tariff increase will affect consumers of seven electricity distribution utilities in Gujarat, Maharashtra, Rajasthan, Punjab and Haryana.

On April 3, CERC offered a ‘compensation package’ to cover the rise in cost of electricity production for Adani’s power plant its 4,620-MW Mundra plant. In its order, the CERC called for setting up a committee within a week that would suggest various measures that can be taken up. The panel was asked to submit its report to the regulatory commission by April 30.

The Gautam S. Adani-promoted power company had petitioned the CERC that because of the rise in price of Indonesian coal, which the company imports to run its power plant, it had become economically unviable to sell electricity to Gujarat and Haryana State utilities at rates decided in 2007-08. The rates were derived through a competitive bidding process.

Similar order was passed on April 15 for 4,000 MW ultra mega power project at Mundra. The revised tariff will be in addition to the existing levelised tariff of Rs 2.26/unit.

>siddhartha.s@thehindu.co.in

Published on August 19, 2013

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