Taking cognizance of the difficulties faced by industries in Mihan, Maharashtra Electricity Regulatory Commission (MERC) has accepted Maharashtra Airport Development Company's (MADC's) proposal to supply power at Rs 4.386 per unit. This is the average rate and the tariff for industries and commercial establishment will be different. It will be approved in the coming days.
In an interim order, MERC has stated MADC could buy power from electricity exchanges or float tenders to buy power from generation companies. The request for deviation in competitive bidding guidelines has been allowed. MERC is a quasi-judicial body and its approval is required for any electricity related issue in the state.
Significantly, MSEDCL has been directed to provide standby support to MADC for meeting contingencies, if any. Mahatransco and load dispatch centre too have been directed to facilitate MADC in supplying power to consumers to Mihan. Last week, MERC had rejected MADC's petition and asked it to file a fresh one on Monday. However, MADC pleaded this would take time and the consumers of Mihan would suffer unnecessarily.
As on date, MADC's tariff is lower than that of MSEDCL. In case it increases, the maximum tariff would be equal to that of MSEDCL for that particular category. MADC cannot increase its tariff beyond MSEDCL tariff.
Meanwhile, AMNEPL - the joint venture of Abhijeet Group and MADC - is yet to file its petition for determination of charges for use of its transmission network. Once it is filed and charges are determined by the Commission, MADC will have to pay it to AMNEPL. MADC has been directed to submit its plan to deal with such charges.
Welcoming the order, RB Goenka of Vidarbha Industries Association (VIA) said that to protect the interests of consumers in Mihan, a commercial agreement between MSEDCL and MADC was necessary. "In case MADC falls short of power on any given day, MSEDCL will have to supply it. Similarly, if MADC buys excess power MSEDCL should buy it. Otherwise, the cost of overdrawal and underdrawal will be loaded on the consumers," he said adding that he had apprised chief minister Devendra Fadnavis of this aspect on Wednesday evening.
Fadnavis had said on Sunday that Mihan units would get power at the rate of Rs 4.30 per unit within two to three days. He has kept his promise. MADC had signed an agreement in 2007 with Abhijeet Group for supplying power to Mihan at Rs 2.97 per unit. When the time came to actually supply the power, Abhijeet said it was unable to secure coal linkage for its 240 MW plant and hence could not supply power at such a low rate. This led to litigation and Abhijeet sued MADC seeking Rs 1,800 crore damages.
MERC has asked MADC to file its submission regarding status of the agreement. MADC should also update the Commission within six months about its plan to meet the obligation as distribution licencee. The detailed tariff would be issued subsequently.
News Source: http://timesofindia.indiatimes.com/city/nagpur/MERC-ayes-power-to-Mihan-at-Rs-4-38/unit/articleshow/45210530.cms?
In an interim order, MERC has stated MADC could buy power from electricity exchanges or float tenders to buy power from generation companies. The request for deviation in competitive bidding guidelines has been allowed. MERC is a quasi-judicial body and its approval is required for any electricity related issue in the state.
Significantly, MSEDCL has been directed to provide standby support to MADC for meeting contingencies, if any. Mahatransco and load dispatch centre too have been directed to facilitate MADC in supplying power to consumers to Mihan. Last week, MERC had rejected MADC's petition and asked it to file a fresh one on Monday. However, MADC pleaded this would take time and the consumers of Mihan would suffer unnecessarily.
As on date, MADC's tariff is lower than that of MSEDCL. In case it increases, the maximum tariff would be equal to that of MSEDCL for that particular category. MADC cannot increase its tariff beyond MSEDCL tariff.
Meanwhile, AMNEPL - the joint venture of Abhijeet Group and MADC - is yet to file its petition for determination of charges for use of its transmission network. Once it is filed and charges are determined by the Commission, MADC will have to pay it to AMNEPL. MADC has been directed to submit its plan to deal with such charges.
Welcoming the order, RB Goenka of Vidarbha Industries Association (VIA) said that to protect the interests of consumers in Mihan, a commercial agreement between MSEDCL and MADC was necessary. "In case MADC falls short of power on any given day, MSEDCL will have to supply it. Similarly, if MADC buys excess power MSEDCL should buy it. Otherwise, the cost of overdrawal and underdrawal will be loaded on the consumers," he said adding that he had apprised chief minister Devendra Fadnavis of this aspect on Wednesday evening.
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MERC has asked MADC to file its submission regarding status of the agreement. MADC should also update the Commission within six months about its plan to meet the obligation as distribution licencee. The detailed tariff would be issued subsequently.
News Source: http://timesofindia.indiatimes.com/city/nagpur/MERC-ayes-power-to-Mihan-at-Rs-4-38/unit/articleshow/45210530.cms?
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