UPERC issues order on change of ownership in PPGCL

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has passed an order in response to a petition by the State Bank of India (SBI) for approval of a change in ownership of Prayagraj Power Generation Company Limited (PPGCL), which had set up a 1,980 MW TPP in Bara. Due to financial losses and failure in debt service obligations, the lenders led by SBI decided to transfer PPGCL’s ownership to Renascent Power Ventures Private Limited after competitive bidding. Further, the UPERC has stated that the new owner would be benefited beyond what was contemplated at the time of the adoption of the tariff for the TPP and, therefore, asked for a reduction in tariff. The UPERC has calculated the gain on account of an increase in normative availability, the sale of uncontracted power and savings in station heat rate as Re 0.22 per unit, in addition to Re 0.17 per unit by way of reduction in interest cost. Therefore, the total gain worked out by the commission stood at Re 0.39 per unit.