Reliance Power's Sasan project gets CERC approval for higher tariffs

Reliance Power on Monday said electricity regulator CERC has approved an increase of 9 paise per unit or 7% in tariff over its 25-year Power Purchase Agreement (PPA) for 3,960-megawatt (MW) Sasan UMPP that translates into a compensation of over Rs 300 crore per annum.

CERC grants annual Compensation of Over Rs 300 Cr for 25 Years PPA Term

— Reliance Power (@reliancepower) January 11, 2016

"Central Electricity Regulatory Commission (CERC) has approved a change in law during operations petition filed by Sasan Power Ltd," the company said in a statement. The order allows it to claim an increase in electricity duty rate and energy development cess on the sale of power to the Madhya Pradesh and on auxiliary power consumption, it said.

One time compensation of Rs 271 crore is granted by regulatory commission till July 31, 2015, the company said.

CERC Approves Change in Law Petition of Sasan UMPP; Grants One Time Compensation of Rs 271 Cr

— Reliance Power (@reliancepower) January 11, 2016

"Mechanism for future payments towards change in Electricity Duty Rate and Energy Development Cess has also been approved by the regulatory commission in its order, which provides compensation of over Rs 300 crore per annum, at full capacity, over 25 years PPA term, resulting in effective tariff increase of about 9 paise per unit (7% increase)," it said.

The Sasan Ultra Mega Power Project (UMPP), implemented in Singrauli district of Madhya Pradesh, is the 4,000 MW plant operating at over 100% Plant Load Factor (PLF).

Reliance Power, a part of the Reliance Group, is a leading private sector power generation and coal resources company.

The company has the largest portfolio of power projects in the private sector, based on coal, gas, hydro and renewable energy, with an operating capacity of 5,945 megawatts.