The Central Electricity Regulatory Commission (CERC) on 16-04-2013 admitted two petitions filed by Reliance Power seeking compensation for the increased cost on setting up 4,000 MW Sasan project due to rise in construction cost and fall in rupee value.
Electricity sector regulator CERC has admitted both the petitions, said Amit Kapur, counsel for Reliance Power.
In one of the petitions, the company has sought compensation considering a change in law during the construction period. In the second petition, it has asked for a compensation on account of unforeseen depreciation in rupee.
Reliance Power through its subsidiary Sasan Power Ltd is setting up the 4,000 MW ultra-mega power project at Sasan in Madhya Pradesh.
The company bagged this project in 2007 in a global tender quoting the lowest 'levelised' tariff of Rs. 1.19 per unit for 25 years.
As per the power purchase agreement (PPA) between the developer of the project and procurer of electricity, the company can approach CERC for any change in law during the construction period and fluctuation in the value of the rupee.
Power Finance Corporation, is the nodal agency for the UMPPs in the country, it has awarded four such projects of which Reliance Power have bagged three - Krishnapatnam (Andhra Pradesh) and Tilaiya ( Jharkhand) apart from Sasan.
Tata Power has set up a 4,000 MW Mundra plant in Gujarat. An UMPP is a power plant of at least 4,000 MW generation capacity.
In a significant ruling, the national electricity regulator on 15-04-2013 had allowed Tata Power to raise power tariffs to compensate for an unexpected increase in coal cost.
The CERC asked states that buy electricity from Tata Power's 4,000 megawatt Mundra Plant in Gujarat to form an expert panel to decide on compensating the firm for higher cost of coal imports from Indonesia.
The ruling was similar to the regulator's April 2 order allowing Adani Power to charge more for electricity produced at its Mundra plant in Gujarat.