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JUL 16 2015

MERC rejects MSEDCL review request of two earlier orders regarding compensation in tariff to APML

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 16th JUL 2015

The Maharashtra Electricity Regulatory Commission (MERC) has rejected the claims made by Maharashtra State Electricity Distribution Company Limited (MSEDCL) for review of the commission’s previously passed orders regarding the compensation in tariff with respect to Adani Power Maharashtra Limited (APML).

MSEDCL had sought review on the following aspects of the impugned orders:

  • Computation of shortfall quantity
  • Calculation of station heat rate (SHR) and auxiliary consumption
  • Commission’s decision in earlier order dated July 15, 2014 to consider additional measures to restrict impact of cost pass-through that the commission had lost sight of
  • Deviation from earlier order with regard to cost of transportation of coal
  • Order dated  August 20, 2014, traverses the power purchase agreements (PPA)  originally contemplated under the first proceedings
  • Indicative compensatory charges are not in line with the order dated July 15, 2014

The MERC held that for the grounds raised by MSEDCL for the computation of shortfall quantity does not amount to any error apparent on the face of record. Regarding the calculation of SHR and auxillary consumption, the commission noted that it has taken a well-considered decision to apply the norms specified in the recent Central Electricity Regulatory Commission regulations, which are more stringent than those specified by this commission and therefore, does not qualified for review. As regards with the review of commission’s order to consider additional measures to restrict impact of cost pass-through, MERC held that  review on this ground is not well-founded, nor is it within its ambit.

In matter of the order traversing the PPA originally contemplated under the first proceedings, the commission stated that it had addressed the matter of applicability of compensatory fuel charge for the PPA dated September 8, 2008, in the context of its earlier order. That being the case, no ground for review of the considered decision of the commission has been made out by MSEDCL. Similarly, the commission rejected MSEDCL’s request for the review of the cost of transporting coal and indicative compensatory charges.


Adani Enterprise Limited Maharashtra Maharashtra State Electricity Distribution Company Ltd Adani Power Ltd Central Electricity Regulatory Commission Coal Tariff Electricity Regulatory Commission Maharashtra State Electricity Regulatory Commissiion Power Electricity

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