Electricity Distribution Companies (Discoms) To Challenge CERC Order

Four discoms to challenge CERC order

• The electricity distribution companies (discoms) of 4 states have decided to challenge the Central Electricity Regulatory Commission’s  (CERC) current order to allow compensatory tariff for the Ultra Mega Power Projects (UMPP) of Tata Power and Adani Power at Mundra in  Gujarat in the Appellate Tribunal for Electricity (APTEL) as they have received permission from cabinets of their particular State governments.
• The 4 procurers are from Punjab, Haryana, Maharashtra and Gujarat & believe the compensatory tariff granted  to power generating companies to offset the unexpected escalation in price of imported coal will put financial burden on them and their  consumers.
• The Power Purchase Agreement (PPA) signed among the generating companies is considered sacrosanct & any rise in tariff can make competitive bidding process  irrelevant.
• The CERC’s order allows the complete fuel cost to be borne by generating companies to deal with change in law in Indonesia which made  coal imports costly, rendering plants unviable.

Exams Perspective:

1. Electricity Distribution Companies (discoms)
2. Power Purchase Agreement (PPA)
3. Ultra Mega Power Projects (UMPP)
4. Central Electricity Regulatory Commission’s  (CERC)
5. Appellate Tribunal for Electricity (APTEL)