Millennium Post

CERC seeks response on Mundra power tariff hike

Central Electricity Regulatory Commission on Thursday asked Coastal Gujarat Power and buyers of electricity from the 4,000 MW Mundra project to submit their response in a week's time on the tariff hike issue.

Coastal Gujarat Power Ltd, a subsidiary of Tata Power, which is executing the 4,000 MW Mundra Ultra Mega Power Project in Gujarat, presented its case to CERC. Tata Power had approached CERC seeking higher tariff for power generated from the Mundra plant due to expensive imported coal.

The company won the Mundra UMPP through competitive bidding by quoting a price of Rs 2.26 per unit in 2007. Now, it has sought higher tariff of about Rs 3 per unit. 'The (CERC) Bench has heard all the arguments and has asked for the response from the procurers in a week's time, after which the date for the next hearing would be fixed,' a source said. He said stakeholders including CGPL, state distribution companies from Gujarat and Punjab have argued their case before the Bench.

One of the procurer states has said: 'We would suggest that whatever arguments they (CGPL) have given, they should give in the agenda form for the next hearing. First, discuss it with procurers and if there is a deadlock then come to the Commission.'
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