The Association of Power Producers (APP), a representative body of private power generators, has moved the Central Electricity Regulatory Commission (CERC) to seek termination of additional power purchase agreements (PPAs) worth 38,000 mw signed by NTPC in the run up to the implementation of the competitive tariff bidding regime on January 6 this year.
In a petition submitted to the electricity regulator on Tuesday, the association has argued that the central utility does not have in place key inputs like coal and water linkages for these projects and it has rushed to sign PPAs for unprecedented quantum of power prior to January 6 just to avoid competition for the allocation of power projects.
?We will hold a hearing soon to see whether the case is admissible or not,? CERC chairman Pramod Deo told FE while confirming the filing of petition by the APP.
?The association has argued before the CERC that NTPC has misused its dominant position in the domestic power by signing unprecedented size of PPAs. As a result, consumers will have to pay more because tariff of NTPC?s power projects is R0.23-25 a unit higher compared to projects allocated through tariff bidding,? Ashok Khurana, director general, APP, said.
NTPC has signed these PPAs between October 10 and January 5, 2011. However, it has not violated any law by signing these PPAs. That is the reason the APP has not talked of any violation of law in the petition submitted to the CERC.
Earlier, NTPC had petitioned the CERC to extend the 6 January deadline for the implementation of mandatory bidding regime. However, the regulator declined the central utility?s plea on the ground that tariffs discovered through bidding route are more competitive compared to cost-plus system. This finding emerged from a study conducted by the CERC.
APP has key private producers like Reliance Power, Tata Power and GMR Energy as its members.