On eve of Sasan start, RPower seeks tariff hike
Claiming a hit of over R350 crore on account of “change in law”, Reliance Power has applied for a hike in tariff for its Sasan power project — the country’s first ultra mega power project — even before electricity generation has commenced from the project. The reasons cited in the petition include a revision in water charges and hikes in excise duty and royalty on coal.
In the petition moved before the Central Electricity Regulatory Commission (CERC), slated to come up for hearing on January 30, Reliance Power arm Sasan Power has sought compensation saying the “change in law” will be “impacting revenues and costs during the operating period”. The petition, filed on January 16, 2013, comes just ahead of the scheduled commercial operation date (COD) of January 31 for the first unit.
Under the original power purchase agreement (PPA) signed by the developer, electricity was to be delivered by Sasan Power to a clutch of 14 distribution utilities at a levellised tariff of R1.19616/kWh over 25 years. The R350-crore compensation sought by the developer, which works out to a tariff hike of slightly over 13 paise per unit, could possibly delay the commissioning of the project.
Source: Financial Express