Consumer body files petition in GERC over Adani Power's 'unfair trade practices'

Written by Avinash Nair | Ahmedabad | Updated: Sep 3 2014, 21:25pm hrs
Adani Power'Adani Power (shutdown) created power shortage in Gujarat and GUVNLhad to purchase expensive gas.' (In picture: Gautam Adani)
The Consumer Education Research Society (CERS) has filed a petition before the state Gujarat Electricity Regulatory Commission (GERC) claiming that Adani Power Ltd was 'adopting unfair trade practices' by shutting down eight units of it's 4620 MW power plant at Mundra in Kutch. The consumer body also claimed that the move to shutdown units was forcing Gujarat government to buy 'expensive' power.

CERS has filed this petition under Section 86 of the Electricity Act, 2003 on Tuesday. The petition has been admitted by the GERC, stated a release from the consumer body on Wednesday.

In the release, CERS contended that "APL was aggrieved by the stay" on the compensatory tariff put by the Supreme Court and "resorted to unfair trade practice and shutdown eight units at Mundra from August 26, 2014."

The SC had recently stayed the interim order of the Appellate Tribunal of Electricity (APTEL) allowing Tata Power and Adani Power to charge higher electricity tariffs on account of a rise in the cost of coal.

"This (shutdown) created power shortage in Gujarat and GUVNL (Gujarat Urja Vikas Nigam Ltd) had to run its old plants and purchase expensive gas based generated power from Ukai, Dhuvaran, SUGEN, CLP and other private plants. GUVNL which was not purchasing a single unit from gas based plants had no option but to purchase 1800 MWs at Rs 7-8 per unit, ultimately burdening the consumers of Gujarat," CERS claimed.

The release claimed that Adani Power has given "lame excuses" of shortage of coal, annual planned maintenance and breakdown of units as reasons for shut down of eight units.

"In its petition CERS has demanded immediate hearing on this urgent matter where APL has shut down its plants with malafide intentions to pressurise GUVNL and GERC," stated the release which went on to add that the non-availability of cheaper power will burden of Rs 2.12 crore per day.

CERS has also requested GERC to impose penalty on APL as per Section 142 of Electricity Act and also demanded recovery of Rs 2.12 crore/day till the company starts supplying 2000 MWs to GUVNL.

APL is supplying only 200 MWs power to GUVNL against the contracted quantity of 2000 MWs. APL is operating only one of the 330 MWs unit. GUVNL and APL has signed two Power Purchase Agreements (PPAs) in 2007 to supply 1000 MWs at Rs 2.35 per unit and another 1000 MWs at Rs 2.89 per unit, stated the release

APL has a total installed capacity of 4620 MWs comprising of four units of 330 MWs each and five units of 660 MWs each that mostly use Indonesia coal brought by APL from its own coal mines.