The Central Electricity Regulatory Commission (CERC) has refused to approve the tariff of the Ratnagiri power project, merely on the basis of mutual agreements reached between the Ratnagiri Gas & Power Pvt Ltd (RGPPL) and the Maharashtra Electricity Distribution Company Ltd (MahaVitaran).
RGPPL and MahaVitaran had sought the CERC?s approval for the recovery of fixed charges of 101.6 paise per kWh (levelised over 25 years period), which is based on estimated cost. The government of India determined fixed charge of 93 paise per kWh at the start of restructuring which was found viable.
However, CERC asked the RGPPL and MahaVitaran to submit detailed calculation of levelised fixed cost of 101.6 paise per kWh along with basis and assumptions, discount rate, annual inflation/escalation rate and all technical and financial parameters.
CERC has also sought detailed calculation of levelised LNG re-gassification charge of 17 paise per kWh, justification for relaxation of norms for station heat rate of natural gas/regassified liquefied natural gas (RLNG) and naphtha along with manufacturer?s recommendations.
As reported by FE, CERC in the past had declined to give its nod for want of various details. This is the second time, the central regulator declined to approve Ratnagiri project tariff proposal and has convened next hearing on October 30.
Further, CERC has asked RGPPL and MahaVitaran to submit detailed justification for the reasonableness of the consideration of Rs 8,485.45 crore for acquiring the assets of the now defunct Dabhol Power Company and also a break up of the capital cost of Rs 10,038 crore justifying the cost of the Ratnagiri power plant (Rs 7,538 crore) and LNG terminal (Rs 2,500 crore).