CERC has also approved a tariff hike of nine paise per unit or 7% increase for recovery of Rs 300 cr per annum over 25 years of the power purchase agreement term
Anil Ambani-promoted Reliance Power on Monday said the Central Electricity Regulatory Commission (CERC) approved a compensation of Rs 571 crore to be claimed from the procurers of its Sasan Ultra Mega Power Plant (UMPP) in Singrauli district of Madhya Pradesh on account of change in law during operations.
While the commissions’ order allows recovery of one-time compensation of Rs 271 crore till July 2015, it has also approved a tariff hike of nine paise per unit or 7% increase for recovery of Rs 300 crore per annum over 25 years of the power purchase agreement (PPA) term.
The compensation has been allowed on account of increase in electricity duty rate and energy development cess on sale of power to the state of Madhya Pradesh and on auxilliary power consumption. The compensation amount would be paid for by all the procurers of Sasan UMPP together. Apart from the lead procurer Madhya Pradesh, Punjab, Uttar Pradesh, Delhi, Haryana, Rajasthan and Uttarakand are other buyers.
“CERC’s order clearly establishes the principles of change in law in line with the terms of the PPA between Sasan Power and procurers, which will also ease pass-through of future change in law impacts on Sasan UMPP,” RPower said.
The Sasan project is currently operating at 100% utilisation. The plant accounts for a major chunk of nearly 6,000 MW of RPower’s operating capacity.