MERC allows Adani Power compensatory tariff of Rs 1.01/unit

In a major relief to Adani Power, Maharashtra electricity regulator MERC has allowed the power producer to charge Mahavitaran an additional Rs 1.01 per unit as compensatory tariff for 800 mw.
The Maharashtra Electricity Regulatory Commission (MERC) in an order today allowed Adani Power to charge a compensatory tariff of Rs 1.01 per unit for only 800 mw. With this, the total power purchase cost from the 800 mw works out to Rs 3.65 per unit.
Adani Power Maharashtra had entered into an agreement with the state utility Mahavitaran to supply power from its two units-- 2 and 3--with a total capacity of 1,320 mw in Tiroda at a levellised tariff of 2.64 per unit. The Tiroda plant is linked to the Lohara coal block.

In 2009, the Ministry of Environment had cancelled the terms of reference (ToR) for Lohara blocks, which covered almost 75 per cent of the fuel needed for supply of power under the power purchase agreement (PPA), resulting in non-availability of fuel.
"In the absence of such pre-identified fuel source, it is not possible to enter into a contract for supply of electricity," Adani Power Maharashtra had said. It had also requested ministries concerned to allot an alternate block or to revoke its earlier cancellation of ToR.
Adani Power Maharashtra had also requested Mahavitaran to revise tariff in such a way that the impact of change in circumstances is mitigated and it could supply power to the state utility at revised tariff.

Failing to receive favourable response from Mahavitaran, the company petitioned before the MERC to consider a revised fuel cost for generation and supply from the plant and also requested the Commission to consider revised tariff and direct Mahavitaran to execute a new PPA.