WPCL had offered to supply 260 MW to Reliance at a levelized tariff of Rs 4.85 per unit for three years in March 2010. The power purchase agreement (PPA) was executed in June. However, Reliance, which needed this power for Mumbai, sought to terminate the PPA in December on grounds of non-execution of fuel supply agreement (FSA) and some deviations sought by WPCL. It offered to pay compensation to WPCL as per law adding that as the plant was not operating the supplier was not incurring any loss.
While WPCL is selling its power at Rs 4.85 per unit to Reliance, MSEDCL is ready to buy power from Koradi at Rs 4.10 per unit. WPCL was also having problems in getting a transmission licence from Mahatransco. It got permission on January 7. WPCL then filed a petition in MERC on January 24 against Reliance.
Consumer representative Ashok Pendse pointed out that Reliance was facing a shortfall of 600 MW in Mumbai that it was meeting by buying power from other companies. If WPCL power was not purchased, the gap would increase to 860 MW. MERC also stated that in consumer interest, Reliance would have to buy the power as the PPA was executed as per central government norms. The Commission also dismissed other contentions of Reliance. It will have to buy 120 MW from April 20 and full quantum of 260 MW from May 1.
Meanwhile, Abhijeet MADC Nagpur Energy Pvt Ltd (AMNEPL), which had executed a 55 MW PPA with Reliance, also sought an approval from MERC. The Commission stated it was examining legal validity of the PPA and until then Reliance should not cancel the PPA.
While WPCL is selling its power at Rs 4.85 per unit to Reliance, MSEDCL is ready to buy power from Koradi at Rs 4.10 per unit. WPCL was also having problems in getting a transmission licence from Mahatransco. It got permission on January 7. WPCL then filed a petition in MERC on January 24 against Reliance.
Consumer representative Ashok Pendse pointed out that Reliance was facing a shortfall of 600 MW in Mumbai that it was meeting by buying power from other companies. If WPCL power was not purchased, the gap would increase to 860 MW. MERC also stated that in consumer interest, Reliance would have to buy the power as the PPA was executed as per central government norms. The Commission also dismissed other contentions of Reliance. It will have to buy 120 MW from April 20 and full quantum of 260 MW from May 1.
Meanwhile, Abhijeet MADC Nagpur Energy Pvt Ltd (AMNEPL), which had executed a 55 MW PPA with Reliance, also sought an approval from MERC. The Commission stated it was examining legal validity of the PPA and until then Reliance should not cancel the PPA.
