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Home News Power Sector News CERC to hear Adani Power compensatory tariff matter on Nov 13

CERC to hear Adani Power compensatory tariff matter on Nov 13

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CERCElectricity regulator CERC on November 13 will hear Adani Power's plea seeking increase in tariff from its thermal power plant in Gujarat due to rise in price of coal from Indonesia. Adani Power had petitioned Central Electricity Regulatory Commission for evolving a mechanism to meet the escalation in fuel cost due to enactment of new coal pricing regulation by Indonesian government.

Adani Power is executing a coal-based thermal power project at Mundra in Gujarat based on domestic coal. Due to shortfall in production of coal by state-run Coal India, the company had tied up supplies with Indonesia.

CERC, in April, had said that Adani Power should be granted compensation package for its Mundra project which would provide a cushion against the escalation in cost of imported coal for the plant.

The compensation in the form of compensatory tariff will be decided by a committee headed by HDFC Chairman Deepak Parekh, the regulator had said in its order.

The committee, in its report submitted to CERC, is believed to have suggested a hike of about 50 paise per unit for the Adani Power's plant in Mundra.

The regulator will decide on the compensatory tariff after hearing the petitioner (Adani Power) and the power procuring states, including lead procurer Haryana. Before allowing for escalation in tariff.

Source - ET

 

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