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Home News Power Sector News APTEL rejects Dabhol's bid to increase tariff

APTEL rejects Dabhol's bid to increase tariff

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Dhabol LNG TerminalAppellate Tribunal for Electricity (APTEL) has rejected a petition filed by Ratnagiri Gas and Power Private Limited (RGPPL), which runs the Dabhol power plant, to recover the construction cost of the liquefied natural gas (LNG) terminal. MSEDCL is the only purchaser of Dabhol power and RGPPL wanted consumers of the state to pay for the terminal. RGPPL had filed a petition in Central Electricity Regulatory Commission (CERC), which had rejected the plea. The company then approached the APTEL.

APTEL said in its judgment that since the LNG terminal had not been commissioned its cost could not be loaded on power tariff and cause undue burden on consumers for a facility that is not being used.

Dabhol is presently running on domestic LNG supplied by Reliance. The LNG terminal was needed for imported LNG. However, RGPPL has claimed the construction of the terminal would increase the revenue in the long run, justifying the capital expenditure. The company plans to use it for LNG tolling - charging users for passage of gas through the terminal.

APTEL upheld CERC's decision to allow RGPPL's expenses of maintaining only one month LNG stock.

The tribunal has, however, directed CERC to relax unit availability norms for Dabhol since the units run on technology that is not available in India. Secondly, RGPPL had lot of problems in starting these units. On the other hand, APTEL told RGPPL that if in future the unit availability increased beyond 85% it would have to share the incentive with its customer MSEDCL, as per norms devised by CERC.

APTEL also relaxed maintenance norms for Dabhol units as they use F class turbines, which are used at only one other plant in India.

Source- Times of India


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