Reliance Power applies for hike in Sasan tariff on higher overheads
In the petition moved before the Central Electricity Regulatory Commission, tentatively slated to come up for hearing on January 30, Reliance Power arm Sasan Power Ltd has sought compensation citing that 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 COD for the first unit of January 31, 2013.
Under the original power purchase agreement (PPA) for the project signed by the developer, electricity was to be delivered by Sasan Power to a clutch of 14 distribution utilities at a levelised tariff of Rs 1.19616/kWh over the 25-year PPA tenure. The Rs 350 crore compensation amount sought by developer, which works out to a tariff hike of slightly over 13 paise per unit, could possibly delay the commissioning schedule of the project, a government official said.
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
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