The Gujarat government has asked its power distribution companies (discoms) to approach the Central Electricity Regulatory Commission (CERC) to get approval for a tariff hike. The proposed hike would aim to pass on to consumers, partially, the higher prices of imported coal, which feeds one of Gujarat’s ultra mega power projects (UMPPs) as well as two other major plants.
If the regulator does clear the tariff hike, it would affect consumers of various states, including Maharashtra, Rajasthan, Punjab, Gujarat and Haryana. Each of these states has signed a power purchase agreement (PPA) with the three power plants that run on imported coal.
Issues facing the plants
The UMPP is run by the Tata group while the other two plants are run by the Adani group and the Essar group, respectively. They can run only on imported coal and have a combined generation capacity of around 10,000 megawatts. Read More