‘Pvt thermal utility can generate power’
The interim arrangement of power supply is valid only until the private generator procures domestic coal linkage and commences supply.
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CHENNAI: Tamil Nadu Electricity Regulatory Commission has allowed the private thermal generator SEPC Power to generate power using imported coal until it gets domestic coal linkage, and has also do away with the ceiling of variable fuel charge of Rs 2.37 per unit.
In its order, the commission has directed the SEPC, which has set up 525 MW thermal power plant at Thoothukudi, to procure imported coal, as an interim arrangement, for the supply of power to the Tangedco. But it should make all earnest endeavours to procure imported coal at the cheapest price prevailing in the market.
“The interim arrangement of power supply is valid only until the private generator procures domestic coal linkage and commences supply using domestic coal supplied through linkage,” it said.
SEPC has sought relief from the variable fuel charge ceiling of Rs 2.37 per unit as the price of imported coal has gone up in the international market since June 2021. It argued that the VFC has also increased from Rs 2.38 per unit in November 2020 to Rs 4.88 per unit in December 2021.
“As per the model calculation, there is a price difference of Rs 2.51 per unit which converts into a loss of Rs 78.44 crore approximately per month (Rs 941 crore/annum) to the SEPC, if it operates the plant based on current imported coal price,” it claimed.
Tangedco noted that the 525 MW thermal power plant achieved commercial operation on November 30, 2021. Without any prior intimation, the generator was unilaterally tripped after 72-hour trial run tests.
It also dismissed the claim of the private generator that the plant was not operated due to the high cost of imported coal. “Without generating a single unit after achieving COD, the company cannot state that the hike of imported coal price is the sole reason for shutting down the project,” it said.
SEPC also pointed out that Tangedco procured power at Rs 8.50 per unit through a short-term tender even as it offered to supply power at Rs 7.65 per unit.
The commission agreed to SEPC’s demand for doing away with the VFC ceiling and dismissed Tangedco’s contention of inordinate delay in the project execution.
