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Pune-based consumer organisation Prayas has appealed to the Central Electricity Regulatory Commission (CERC) to take a decision on the final rates for Tata Power's and Adani Power's projects in Mundra, Gujarat, after a due public hearing. It urged the power regulator to allow it to make submissions based on subsequent proceedings in the matter. It has also asked CERC to follow due regulatory procedure and consult all stakeholders, especially consumers of the five state distribution companies.
The appeal follows a report on the recommendations of a Deepak Parekh-led committee to CERC, suggesting revision in the rates for Tata Power and Adani Power for their Mundra plants. "In spite of being one of the intervening parties in this matter, we have not received any copy of the said report. In our letter dated May 22 we demanded a thorough public process, similar to those being undertaken for other tariff revisions, be followed," Prayas said in its letter dated August 23 to CERC.
Tata Power may get a 'compensatory tariff' of 45-55 paise for its 4,000-Mw Mundra plant, while Adani Power may be allowed to increase rates by 50-60 paise for its 4,620-Mw plant.
Prayas said the impact on rates for the Tata Power project was estimated to be 45-55 paise a unit. Considering normative availability of 80 per cent, this implies a rate rise of Rs 1,260-Rs 1,540 crore a year for distribution companies. "Thus, the compensatory tariff being offered is beyond the relief permissible under the present contractual and policy framework," it added. It also said for any other revision in rates, CERC would have to follow a process under section 64 of the Electricity Act, 2003. This requires publication of relevant data and the need for public consultation.
Prayas said the Deepak Parekh committee didn't have representation of consumer interests, despite CERC stating the need for balancing the interests of consumers and investors.
"The presence of an independent banker and financial analyst can hardly be considered adequate representation of the interests of this most affected stakeholder - the distribution company's consumers. Therefore, consulting the consumers regarding the committee report and its findings is imperative," it said.
