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Regulator lets Adani raise imported coal power tariff

Adani Power had approached the CERC seeking an increase in the power tariff.

Written by ENS Economic Bureau | New Delhi | Published: April 3, 2013 10:16:23 pm

The Central Electricity Regulatory Commission has allowed Adani Power Ltd to temporarily raise electricity tariffs from its imported coal-based power station in Mundra,Gujarat.

CERC’s order,issued late Tuesday,may have a favourable bearing on similar contracts awarded through a competitive bidding process for projects stuck on account of an increase in international coal prices,including those of Tata Power and Reliance Power.

Adani Power had approached the CERC seeking an increase in the power tariff after utilities in Haryana and Gujarat declined to pay higher rates for electricity generated from its Mundra plant. The CERC order called for a variable “compensatory tariff” to be offered to Adani until the fuel price situation “stabilises”. Indications are that distribution utilities in Haryana and Gujarat,which have contracts to buy power from Adani,are likely to move the Appellate Tribunal for Electricity.

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