Three power distribution companies of Rajasthan ? Ajmer Vidyut Vitaran Nigam, Jaipur Vidyut Vitaran Nigam and Jodhpur Vidyut Vitaran Nigam ? which are sourcing electricity from Tata Power’s 4,000-mw Mundra ultra-mega plant under long-term contracts, have moved the appellate tribunal against the Central Electricity Regulatory Committee’s compensatory tariff package for the project.
The discoms have sought quashing of the CERC’s tariff order, saying that it violates power purchase agreements ( PPAs), adding that if implemented, the CERC order will substantially increase financial burden for them. Sources said, discoms from Gujarat, Haryana, Punjab and Mahrashtra which have signed similar power supply contracts with the Mundra UMPP, could follow suit soon.
In an order issued on March 21, the CERC had determined compensatory tariff of 52 paise/unit over and above the existing power purchase agreement ( PPA) tariff of R2.26 a unit for the plant. Besides, the regulator also asked the discom to clear arrears of R329 crore for losses incurred by the plant till end of March 2013. The regulator had said that compensatory tariff was necessary to help the developer recover additional fuel costs from the increase in the Indonesian coal price.
According to credit rating agency ICRA, implementation of CERC’s tariff package for the Mundra UMPP would entail a 3-10 paise/unit hike in retail electricity tariffs for the five beneficiary states.
Energy Watchdog, an NGO, has challenged the CERC’s order on compensatory tariff for the Mundra UMPP at Aptel, saying it would lead to additional financial burden of R44,000 crore for the discoms in the five states.