CERC approves tariff revision for Adani Power’s Mundra TPP

The Central Electricity Regulatory Commission (CERC) has approved tariff revision for Adani Power Limited’s (APL) power purchase agreements (PPAs) for 2,000 MW capacity of the 4,620 MW Mundra thermal power plant (TPP) in Gujarat. The CERC’s decision is in line with the Gujarat government’s high-powered committee recommendations about the revision in the tariff structures of the PPAs for stressed projects in the state. The amendments allow a revision in energy charges on account of an increase in the price of imported coal, subject to a ceiling of $110 per tonne for 6,322 kCal per kg grade of coal. Further, the fixed charges have been reduced by 20 paise per unit, following lenders taking a cut on some portion of the debt repayment. The revised energy charges under the amended PPA will come into effect retrospectively from October 15, 2018. In addition, the amendments increase the power generation capacity tied up under the PPAs by about 434 MW, resulting in a total tied capacity of 2,434 MW. These amendments will allow APL to address the under-recovery of fuel costs.

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