On eve of Sasan start, RPower seeks tariff hike
In the petition moved before the Central Electricity Regulatory Commission (CERC), slated to come up for hearing on January 30, Reliance Power arm Sasan Power has sought compensation saying the “change in law” will be “impacting revenues and costs during the operating period”. The petition, filed on January 16, 2013, comes just ahead of the scheduled commercial operation date (COD) of January 31 for the first unit.
Under the original power purchase agreement (PPA) signed by the developer, electricity was to be delivered by Sasan Power to a clutch of 14 distribution utilities at a levellised tariff of R1.19616/kWh over 25 years. The R350-crore compensationsought by the developer, which works out to a tariff hike of slightly over 13 paise per unit, could possibly delay the commissioning of the project.
Responding to a query, a Reliance Power spokesperson said the application before the CERC seeks compensation under the “change of law” head as provided “under Article 13 of the PPA”.
On whether the first 660 MW unit of the project would be commissioned by January 31, he quoted a statement attributed to Reliance Power CEO JP Chalasani saying:
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