CERC allows compensation to GMR Warora

The Central Electricity Regulatory Commission (CERC) has allowed compensation to GMR Warora Energy Limited for running its power plant on imported coal in the event of a shortage of linkage coal. The order pertains to the levy of busy season surcharge and development surcharge, carrying cost, and shortage in linkage coal due to changes in the New Coal Distribution Policy. The order is significant as this is the first such order where compensation for the shortfall in linkage coal has been allowed for a period beyond March 31, 2017. Power plant owners will now be able to run their plants on imported coal if Coal India Limited is not able to meet its commitments and claim the extra costs in electricity tariffs.

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