BHUBANESWAR: Even as the public hearing for determination of power generation tariff of Odisha Power Generation Corporation (OPGC) from its first two thermal units in Ib Thermal Power Station for the ensuing fiscal is over, the Odisha Electricity Regulatory Commission (OERC) will have to fix the energy price as per the generator’s power purchase agreement (PPA) with Gridco.
Earlier, the OERC had to revisit its tariff orders for 2016-17, 2017-18 and 2018-19 and determined the energy cost afresh for OPGC as per the April 19, 2018 order of the Supreme Court.
Aggrieved over the tariff order for 2016-17 which was determined in accordance with the terms and conditions of OERC Generation Tariff Regulations, 2014, OPGC had challenged the order before the Appellate Tribunal for Electricity (APTEL). The tribunal upheld the OERC order on April 6, 2017.
In a civil appeal, OPGC moved to the Supreme Court against the APTEL order and the apex court while setting aside the tariff order for 2016-17 remanded the matter to the OERC for determination of the power cost afresh as per the PPA.
The commission had already passed the tariff order for 2017-18 and 2018-19 by the time the apex court pronounced its order on the appeal of OPGC.
Subsequently, OPGC filed a separate petition before OERC demanding approval of additional capitalisation for re-determination of tariff from 2015-16 to 2018-19 in compliance with the Commission’s tariff order for 2018-19 and SC order. The regulatory proceedings of the case are still in progress.
Earlier, the State-owned OPGC in which US-based AES Corporation has 49 per cent stake had claimed additional capitalisation of Rs 122.15 crore from 2015-16 to 2018-19.
In tariff application for 2020-21, OPGC has proposed additional capitalisation of Rs18.52 crore and Rs 21.58 crore for 2019-20 and 2020-21 respectively. The generator claimed that the additional capitalisation qualifies under the 2014 regulations. Total additional capital claimed by the generator is Rs162.25 crore.
As the power generation tariff for 2019-20 was determined on the basis of original project cost of Rs1,060 (Rs450 crore equity and Rs610 crore debt), the PSU has filed its application for determination of tariff for 2020-21 in line with the amended PPA approved by the OERC in April, 2015. OPGC has demanded 20 paise hike on power generation cost for 2020-21 against Rs 2.47 per unit fixed for 2019-20.