Maharashtra Electricity Regulatory Commission (MERC) partly allowed the petition filed by Maharashtra Airport Development Company Ltd (MADC).
The petition was filed to seek approval of power procurement plan for four years, Power Purchase Agreement (PPA) and adoption of Tariff for medium term procurement of power starting from March 1, 2021 to February 28, 2025.
MADC filed the petition on March 5, 20221 under Section 86 and Section 63 of the Electricity Act 2003. The Commission has approved the revised Power Procurement plan for MADC and rejected the adoption of a tariff of Rs 5.25/kWh, being non- reflective of the market price.
According to the order of the Commission, MADC will undertake re-bidding of its power requirement, complete the procedure and file the petition for adoption of tariff within six months from the date of the order.
MERC has permitted MADC to continue scheduling of power against Letter of Authorization (LoA) issued by it at a rate of Rs. 5.25/kWh to maintain continuity of power supply to consumers in MIHAN SEZ.
The official notification of the order states that such power purchase cost may not be allowed to be passed on fully to consumers as it is.
MERC will take an appropriate view on this issue based on the new rate as discovered in the re-bidding process. The Commission may accordingly disallow certain power purchase expenses during Multi Year Tariff (MYT) Order.