Sasan UMPP procurers raise issue of commercial operation again

Central power regulator, CERC, to hear case in October

Two states slated to procure power from Reliance Power’s Sasan Ultra Mega Power project (UMPP) have raised the issue of the plant’s Commercial Operation Declaration (COD) again.

The objections came during an ongoing hearing in Central Electricity Regulatory Commission (CERC) on four tariff-review petitions filed by the company.

This comes a fortnight after the Appellate Tribunal of Electricity (ATE) set aside a 20 June order of the electricity regulator, in a separate petition by power transmitter Western Regional Load Dispatch Centre (WRLDC), which had asked RPower to initiate testing of the project afresh.

The representatives of Punjab and Himachal Pradesh said during the hearing that the Independent Engineer’s certificate (establishing COD) is not in line with the provisions of the Power Purchase Agreement (PPA). Punjab’s representative said the COD of the plant continues to be an issue and that the generation fell below the minimum threshold on 12 August.

RPower’s counsel rejected the contention of the two states while WRLDC informed the plant has been tested and scheduling of power has started based on the acceptance of lead procurer Madhya Pradesh. The commission asked the beneficiary states to file their replies on the petition by 16 September and listed the case for hearing again on 10 October.

RPower had bagged the 3,960 Megawatt (Mw) Sasan UMPP in 2006. The company had signed power purchase agreements with 14 distribution companies in seven states. The first unit of the project was synchronized in March this year.

However, WRLDC had approached CERC alleging RPower declared achievement of commercial parameters wrongly. CERC asked for re-testing the plant in its order in June. APTEL’s order quashing the CERC order followed in August.

Separately, the company has filed four petitions in CERC seeking a review of the levelised tariff for the project.