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The Haryana state electricity distribution utilities has moved the Appellate Tribunal For Electricity opposing a tariff hike for electricity supplied from Adani Power’s 4,620 MW station at Mundra.
“We have approached the tribunal saying we may not agree with the compensation tariff. Though, we would continue our discussion in the committee formed for the issue,” said a senior official at the Haryana Power Generation Corporation Ltd.
The Haryana utilities’ decision has come after elaborate discussions were held at the level of State Chief Minister Bhupinder Singh Hooda.
It is immediately not known if the second buyer of electricity from Adani’s Mundra station, Gujarat, has also taken a similar step.
On April 3, the Central Electricity Regulatory Commission (CERC) offered a ‘compensation package’ to cover the rise in cost of electricity production for Adani's Mundra plant. The regulator has ordered to form a committee within a week that would suggest the various measures that can be taken up. The panel was asked submit its report to CERC by April 30.
However, the committee has been formed much later than April 30 and the discussions are yet to begin.
Haryana Discoms get 1,424 MW of electricity at Rs 2.94/kWh (Rs 0.977/kWh as capacity charge and Rs 1.963/kWh as the energy charge).
On the other hand, the producer signed two power purchase agreements (PPAs) with Gujarat for 1,000 MW each. One at levelised tariff of Rs 2.3495 per kWh and second at a rate of Rs 2.89 per kWh.
The power plant was sourcing coal from Indonesia. On September 23, 2010, the Indonesian Government decided that minerals from the country would have to be sold at benchmark price. The benchmark price is calculated on a monthly basis.
Because of the change in rules in Indonesia leading to higher coal prices, Adani Power said that cost of production of electricity from Mundra Power Plant has increased 'tremendously.' According to the private firm, it has become commercially unviable to supply power to the utilities at the tariffs decided earlier.
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