Adani, Tata Power trim supplies to Gujarat as tariff ruling skews cost

The Supreme Court ruling setting aside a decision of the Central Appellate Tribunal for Electricity, effectively denying ‘compensatory tariff’ to Tata Power and Adani Power, has driven the producers to cut back power supply to Gujarat, citing financial unviability.

The two companies have suspended electricity supplies to Gujarat Urja Vikas Nigam Ltd (GUVNL), the parent of discoms in Gujarat, saying higher imported fuel costs had skewed their financial viability. The companies have begun the phased lowering of supply at the peak of summer.

Gujarat Energy Minister Chimanbhai Sapariya confirmed to BusinessLine that Adani Power and Tata Power had discontinued 1250 MW and about 500 MW supply, respectively. The Ruias-led Essar Power Gujarat Ltd (EPGL), too, has suspended supply owing to higher international coal prices following changes in Indonesian regulations.

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