Coal news and updates

RPower gets CERC nod for 7% Sasan tariff increase

Reliance Power informed the Bombay Stock Exchange (BSE) on January 11, 2015 that the Central Regulatory Electricity Commission (CERC) had approved a 7% tariff increase and also a nod in favour of  the company’s petition seeking “change in law” during operations related to the company’s 4,000-megawatt (MW) Sasan ultra mega power project (UMPP) in Madhya Pradesh.

According to the release, the tariff would increase by 9 paise per unit, and fetch an extra Rs 300 crore every year. The electricity controller had allowed a one-time compensation of Rs 271 crore until July 31, 2015. The mechanism for future payments towards a change in the electricity duty rate and energy development cess has also been approved by the regulatory commission in its order, which provides compensation of over Rs 300 crore per annum at full capacity over the 25-year PPA term resulting in effective tariff increase of about 9 paise per unit. 

CERC’s order established the principles of change in law in line with the terms of the power purchase agreement between Sasan Power Limited and procurers will also ease pass-through of the impact of future changes in laws on Sasan Power.

The company further informed that the entire capacity of the 3,960-MW of Sasan UMPP is operational and delivering best in class availability.

Source: ICMW