The Central Electricity Regulatory Commission (CERC) has dismissed the complaint filed by the Association of Power Producers (APP) against state-owned NTPC for abusing its dominant position in signing power purchase agreements (PPAs).
In a ruling on the complaint filed by APP, which had alleged that NTPC had abused its dominant position into signing APP pacts for 37,000 MW capacity prior to the coming into force of tariff-based bidding regime in January 2011, CERC observed that no such abuse of position took place.
APP inlcudes Tata Power, Reliance Power and JSW Energy. “We hold that the PPAs signed by NTPC are within the framework and the time permitted under the Tariff Policy, and, therefore, no direction is called for under Section 60 of the Act, which relates to market dominance,’’ CERC said in its order dated April 26.
The CERC also said it did not find it necessary to refer the matter to fair trade regulator Competition Commission of India (CCI) for its opinion. The order came on the issue of conduct of NTPC between October 2010 and January 5, 2011, in rushing to sign PPAs for supply of 37,000 MW of electricity abusing its dominant position, thereby causing adverse effect on competition in the electricity industry.
NTPC, in its submission on July 13, 2012, had indicated to the CERC the status of projects with a capacity of 35,600 MW for which the PPAs had been executed by NTPC but which were unlikely to be taken up during the XII Plan as the investment approvals were still under process.
“Consequently, there is sufficient timeframe available for the stakeholders to adjust long-term plan for capacity addition, transmission planning and fuel requirement. It needs to be emphasised that the distribution companies and state electricity boards who have signed the PPAs with NTPC have planned their future requirement of power accordingly,’’ the CERC further stated.