Central Electricity Regulatory Commission (CERC) has allowed Reliance Infrastructure firms BSES Yamuna Power and BSES Rajdhani Power to exit power purchase agreements with NTPC Dadri-I power plant, which completed 25 years of service on November 30 last year.
The CERC order issued on July 1, 2021, is in line with the efforts of the BSES power distribution firms (discoms) operating in Delhi to optimize their power purchase costs, including exit from the costly power plants, as also to meet their renewable power purchase obligations (RPO) as mandated by the Delhi Electricity Regulatory Commission.
The power regulator noted that the government guidelines also permit the willing distribution companies to relinquish their allocation after 25 years from COD (commercial date operation) and the DERC has already written to the power ministry for de-allocation of share of distribution companies of Delhi.
The allocated share of power from Dadri-I to BSES Yamuna Power and BSES Rajdhani Power was 62 mw and 560 mw, respectively.
BSES discoms had stopped scheduling power from Dadri -I plant of NTPC, in November 2020 i.e., upon completion of the plant 25 years from its commercial date of operation and had sought an exit from the Dadri-I plant.
In its 47-page order, dated July 1, 2021, CERC said, “Accordingly, we answer that PPA/SPPA is still subsisting as the allocation of power by Ministry of Power, Government of India from Dadri-I generating station to the Petitioner is still subsisting as per the Share Allocation Revision No.1/2021-22 dated 1.4.2021 issued by NRPC; that the Petitioner may exit from the PPA/SPPA by approaching the Ministry of Power for de-allocating its share from Dadri-I generating station; and that as Dadri-I generating station has already completed 25 years on November 30, 2020, from its COD, the provisions of Regulation 17(2) related to first right of refusal would become effective once the Ministry of Power de-allocates share of the Petitioners from Dadri-I generating station.”
(Source: PTI, CERC Order No.341 of 2021, dated July 1, 2021)
(Featured photograph shows NTPC’s Dadri coal-fired power plant located in Gautam Buddha Nagar district, Uttar Pradesh.)