ERC rejects discoms’ plea on tariff

Renewable Power Generators (RPGs) – Individual farmers, group of farmers, farmers cooperatives, gram panchayats, farmer producer organisations (FPOs) and water users’ associations (WUAs) – who either have or plans to have their solar power units with capacity of 500 kilowatt (kw) to 2 megawatt (mw) would continue to get a tariff of ₹3.13 per unit of energy injected to the grid.

Telangana State Electricity Regulator Commission (TSERC) has recently rejected a petition filed by the two power distribution companies (discoms) in the State with a plea to review the tariff and revise it to ₹2.80 per unit, as arrived at the norms of Central Electricity Regulatory Commission (CERC) regulation.

The TSERC felt that the petition of the discoms for tariff under the Pradhan Mantri Kisan Urja Surakshan Utthan Mahabhiyan (PMKUSUM) was devoid of merits.

The levelised tariff of ₹3.13 per unit injected to the grid by the PRGs in the State was determined by the TSERC in January this year.

However, in a review petition filed on the January 2021 tariff order, the discoms pointed out that the tariff fixed for procurement of energy from RPGs under PMKUSUM was comparatively higher.

They mentioned that tariff determined by the ERC of Punjab was ₹2.75 per unit, ₹3.07 (Madhya Pradesh) and ₹3.05 (Jharkhand) under the scheme and that the cost of solar energy available in the market was considerably reduced over the past few years due to advancement of technology, improvement of efficiency and other factors. Further, they argued that the applicability period of tariff was not taken into consideration.

Besides, the discoms argued that the Commission did not consider the prevailing capital cost (considered cost at ₹3.6 crore per megawatt against ₹3.4 crore as per the prevailing market conditions), interest on term loans (proposed 10% per annum as against 9% as per CERC regulation), interest on working capital (proposed 11% as against 10.5% as per CERC norms), did not financial principles laid out by CERC in the matter of working capital component and discount rate.

However, the Commission, while rejecting the review petition, made it clear that it had considered all parameters with reliance on CERC regulation and tariffs.

Pooled cost

Meanwhile, in another order, the Commission has fixed the average pooled power purchase cost for 2021-22 at ₹4.32 per unit including ₹4.236 for TS-Genco, ₹4.308 for Central Generating Stations and ₹4.448 for others.

The cost fixed for Singareni Thermal at ₹4.687 per unit, ₹3.914 (Chhattisgarh), ₹5.884 (Bhadradri), ₹4.069 (KTPS-VII) and ₹3.158 (Genco-Hydel).

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Printable version | Dec 4, 2021 4:57:21 AM | https://www.thehindu.com/news/cities/Hyderabad/erc-rejects-discoms-plea-on-tariff/article36742825.ece

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