CERC allows Reliance Power to raise Sasan tariff for the second time
The Central Electricity Regulatory Commission (CERC) has once again allowed Anil Ambani-led Reliance Power to raise tariff for power supplied from its Sasan ultra mega power project, giving in to the company’s demand that it should be allowed to pass on to consumers cost incurred on excise duty, royalty and clean cess on coal.
The power regulator has also ordered Rs 348-crore retrospective compensation to Reliance Power to be paid by distribution companies buying electricity from the UMPP for the financial years FY14, FY15 and April-August 2016.
The company had approached the commission seeking higher tariff from the Sasan UMPP, saying imposition of excise duty, clean cess on coal and high rates of royalty amounted to change in law and it should be allowed to be passed on to consumers.
This is the second time the commission has revised the tariff of Sasan UMPP. CERC had, on December 30, allowed the company to pass through electricity duty rate and energy development cess on sale of power to Madhya Pradesh and on auxiliary power consumption, raising tariff of the plant by 9 paise per unit or 7% of the approved price.