UP power regulator disallows interim relief to Bajaj Energy after PPA termination

By: | Published: November 24, 2017 4:34 AM

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has disallowed interim relief to Bajaj Energy after the company sought compensation after its 450 MW plant was shut after the Uttar Pradesh Power Corporation (UPPCL) terminated the power purchase agreement (PPA) signed in 2010.

UPERC, uttar prdaesh, UPPCL, Bajaj Energy, power purchase agreement, PPA termination , UP power regulatorThe regulator noted that since the PPA allows Bajaj Energy to sell power from its plants in the open market and receive fixed charges for three years, the company’s interests are covered under the conditions of the PPA itself. (Reuters)

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has disallowed interim relief to Bajaj Energy after the company sought compensation after its 450 MW plant was shut after the Uttar Pradesh Power Corporation (UPPCL) terminated the power purchase agreement (PPA) signed in 2010. The regulator noted that since the PPA allows Bajaj Energy to sell power from its plants in the open market and receive fixed charges for three years, the company’s interests are covered under the conditions of the PPA itself. Lawyers representing the UPPCL argued that Bajaj Energy has received more than Rs 8,000 crore since 2012 for selling 11,414 million units of electricity at Rs 7.2 a unit, which renders power generator’s plea for non payment of loans
as “misplaced and misconceived.”

UPPCL had terminated PPA with Bajaj Energy in July, stating that the state electricity board was buying power at a rate of Rs 7- 8 per unit from Bajaj Energy, which was more than the average procurement cost of Rs 4.1 a unit from all sources. After joining the central government’s “24×7 Power For All” plan, UPPCL, in its attempt to cut power purchase costs, decided not to buy electricity from power producers whose variable cost is higher than Rs 3.46/unit. The regulator will hear the matter on December 14, after UPPCL and Bajaj Energy file replies and rejoinders against the ongoing arguments.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition