Jaiprakash Power seeks tariff revision for more than approved capacity

Written by Sumit Jha | New Delhi | Updated: Dec 19 2014, 14:30pm hrs
In the face of a show-cause notice from the Central Electricity Authority (CEA) over running the Karcham Wangtoo hydel project at more than the approved capacity, Jaiprakash Power Venture (JPVL) has filed a final tariff petition in the Central Electricity Regulatory Commssion (CERC) mentioning the capacity as 1,200 MW while the approved capacity was only 1,000 MW for the project.

The CEA had decided to send a show-cause notice to JPVL for violating techno-economic clearance conditions in the Karcham Wangtoo project as the project was running at 20% higher capacity than was approved. CEA is under the process of determining the actual capacity of the concerned hydro project.

The petition filed by JPVL for 2014-19 mentions the cost of the project at R6,764 crore. Sources privy to the information told FE that if the CEA pegs the projects capacity at 1,000 MW, CERC will have to reduce the project cost proportionately by nearly R1,100 crore leading to a lower tariff.

The tariff for the Karcham Wangtoo project is determined by CERC on cost-plus basis as it was awarded to JPVL without competitive bidding. Earlier, JSW Energy agreed to buy three operating hydro power plants from JVPL, including the Karcham Wangtoo project, after Jaiprakash Power said its deal to sell its business to Reliance Power had collapsed.

In September, CERC had directed JPVL to file a petition for approval of final tariff as per revcised CERC regulation as the producer withdrew its application for fixing provisional tariff for the Himachal Pradesh-based project.