Anil Ambani-led Reliance Power Ltd on Monday said it has been permitted to charge the Madhya Pradesh government 7% more for power sold from its ultra-mega power project (UMPP) in Sasan.
The tariff hike, which translates to 9 paise per unit, will fetch an extra Rs.300 crore every year, the company said in a BSE filing. The company's power purchase agreement with Madhya Pradesh runs for 25 years.
CERC has also granted a one-time compensation of Rs.271 crore till 31 July 2015, Reliance Power said.
The Central Electricity Regulatory Commission (CERC) has approved a so-called change-in-law petition, the company said. Change in law refers to the right of the company to pass on any increase in cess duties after the project became operational.
Reliance Power subsidiary Sasan Power Ltd is implementing the 4000 megawatt (MW) UMPP in Singrauli district of Madhya Pradesh. The company said the plant is operating at 100% plant load factor (PLF).
Reliance Power had in 2013 filed two petitions seeking increased compensation for the Sasan UMPP. 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. While CERC has approved the first petition, there is no update on the second petition yet, according to a Reliance Power spokesperson.
"The CERC order clearly establishes the principles of Change in Law in line with the terms of the power purchase agreement between Sasan Power Ltd and procurers, which will also ease pass-through of future change in law impacts of Sasan UMPP," the filing said.
The CERC order shows that Reliance Power had claimed relief citing changes in electricity duty on sale of power, higher electricity duty on auxiliary power consumption and energy development cess of Rs.0.15 per unit.