Tata power seeks Rs 33 crore from CLP as damages

Mar 28 2014, 18:28 IST
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SummaryTata Power Delhi Distribution, which has signed a contract to buy 10% electricity from CLP's 1,320 mw Jhajjar plant in Haryana, has disputed the validity of the commercial operation date declared by the developer and sought indemnification for R33 crore of payable transmission charges at the CERC.

Tata Power Delhi Distribution, which has signed a contract to buy 10% electricity from CLP's 1,320 mw Jhajjar plant in Haryana, has disputed the validity of the commercial operation date declared by the developer and sought indemnification for R33 crore of payable transmission charges at the CERC.

TPDDL has contracted power supply from the plant via the group firm Tata Power Trading Company, which has, in turn, signed a power purchase agreement with Jhajjar Power (JPL), the special purpose vehicle set up by CLP to implement and run the plant. Accordingly, TPTCL has also been made a party to the dispute by TPDDL at the CERC.

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The petitioner has submitted before the CERC: "JPL does not have a fuel supply agreement and is therefore not in a position to generate power. However, notwithstanding the same, JPL managed to procure coal for conducting the commissioning test, undertook the same and declared commercial operation.”

The Delhi discom has said that the commercial operation date declared by JPL is illegal and has caused a financial loss to TPDDL because the liability to pay transmission charges has commenced even though there is no assured supply of power from the generating station.

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As per the PPA signed by TPTCL and JPL, the latter is liable to pay liquidated damages to TPTCL in case of a delay in power supply from the plant while TPDDL can claim the same from TPTCL under the power sales agreement (PSA) sealed with the group company.

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