HYDERABAD: The State government is likely to end up paying higher tariff to the Chhattisgarh State Power Generation Company Limited (CSPGCL) for purchasing 1,000 MW power. Dashing the hopes of the Southern Power Distribution Company Limited (SPDCL), the Chhattisgarh State Electricity Regulatory Commission (CSERC) approved the project cost of Marwa Thermal Power Project (MTPP) at Rs 8,892.50 crore.
The Telangana State had earlier signed an MoU with Chhattisgarh government in 2014 for purchase of 1,000 MW. The 1,000 MW power started flowing into the State in May 2017. As per the agreement, Chhattisgarh had to supply 1,000 MW from the Marwa Thermal Power Plant.However, the tariff for unit being purchased by the State government would be higher than the expected, as the Chhattisgarh State ERC determined the higher project, fixed and variable costs.
In its order, the CSERC stated that the Commission has approved the project cost of `8,892.50 crore for Marwa TPP. The commission has approved capital cost of `8,019.25 crore as on July 31, 2016. However, the only consideration made by CSERC was that Marwa TPP would take a fresh loan for clearing the old loans with less interest rates.
Besides, the fixed, variable and project costs, the Commission stated the impact of wage revision and Contribution to Pension and Gratuity has not been considered as part of Annual Fixed Cost, however, the same shall be billed and allowed separately.
“The Commission directs CSPGCL to bill beneficiary of Marwa TPP (Telangana) as per Generation Tariff approved in this Order. The Order will be applicable from July 1, 2018 and will remain in force till March 31, 2021 or till the issue of next tariff order, whichever is later,” the CSERC said.
As CSERC order was against the interest of TS, the State can challenge it in the Court. However, sources said the State many not approach the court and is likely to pay the higher amounts for power purchases.
Moreover, Chhattisgarh offered to sell 1,000 MW power to the State when it was reeling under severe power cuts. With this background, TS may not challenge CSERC order in the courts, sources felt.