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Power regulator CERC’s move to allow a tariff relief to independent power producers (IPP) affected by domestic coal shortfall is positive for the power generation segment, rating agency ICRA said on Monday.
The Central Electricity Regulatory Commission (CERC), in its order on May 16, approved a tariff relief for coal-based power project of GMR Warora Energy arising from the use of imported / e-auction coal in lieu of shortfall in supply of domestic linkage coal under the fuel supply agreement (FSA) signed with Coal India.
This is with respect to the power purchase agreements (PPAs) signed by the company with Maharashtra State Electricity Distribution Company Ltd and Electricity Department, Union Territory of Daman and Nagar Haveli.
ICRA said the order will enable resolution for affected domestic coal-based IPPs aggregating to 14-15 GW having long-term PPAs with state distribution utilities and facing coal supply shortfall.
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