APTEL to hear plea against order allowing Delhi discoms to exit PPAs from Dadri I power plant

The Appellate Tribunal for Electricity (APTEL) will hear an NTPC’s plea challenging Central Electricity Regulatory Commission’s (CERC) order, allowing Delhi’s three power discoms to exit the power purchasing agreement (PPA) withDadri I power plant.

As the APTEL begins hearing the NTPC plea, it would also adjudicate Delhi’s three discoms joint plea to confirm the CERC orderallowing it to exit from PPAs with NTPC’sDadri I power plant.The three discoms are BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution Limited (TPDDL). The discoms have claimed that as part of their efforts to optimise their power purchase costs, they had decided to stop purchasing power from the Dadri I plant which has completed 25 years of its commercial operation and has been generating power at costlier rates.Average power purchase price from Dadri-I to Delhi consumers is around Rs 6.50 per unit against the average price of Rs 3.50 per unit sold by the NTPC to consumers in the rest of the country. According to the discoms, it will lead to savings of around Rs 71.5 billion over the next 10 years, at the rate of around Rs 7.15 billion a year for Delhi consumers.

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