UP Electricity Regulator Cancels PPAs Of Bajaj Energy Units With UPPCL

UP Electricity Regulator Cancels PPAs Of Bajaj Energy Units With UPPCL

The UP Electricity Regulatory Commission has cancelled power purchase agreements with five power units owned by Bajaj Energy because of the higher cost. UPERCchairman, Desh Deepak Verma confirmed that notice of cancellation has been sent to the company.

The commission sent the notice to five units, each of 90 Mw, located in Utraula (Balrampur), Khambarkheda (Lakimpur Kheri), Barkheda (Pilibhit), Kundarki (Gonda) and Maqsudpur (Shahjahanpur). The UP Power Corporation Limited (UPPCL) was purchasing power from the five units at a cost of Rs 7.22 per unit, which was Rs 3.11 more than the average purchase cost of Rs 4.11 per unit from all sources.

The commission also took note of a petition by UP Rajya Vidyut Upbhogta Parishad that claimed that the state government had agreed to purchase power worth over Rs 1770 crores in 2017-18. Parishad chairman, Avdhesh Verma said that the agreement was turning out to be a big burden on power consumers who faced the prospects of a tariff hike.

 

Source Link – ET Energy World

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