State and Central regulatory power commissions have the power to re-open Power Purchase Agreements with IPPs that has been signed well before the Commissions came into
existence.
Speaking at a session on Privatisation of Distribution held here yesterday, former Union power special secretary Pradeep Baijal said PPAs signed before the advent of the regulatory commissions can be re-opened and renegotiated by the commissions.
On the role of the regulatory commissions for IPPs with signed PPAs, Baijal said though signed PPAs do not permit re-opening, there have been instances in other countries where both the regulatory commission and the promoters have agreed to alterations in the existing agreements and have thereby worked more acceptable PPAs.
At another session, the Union power minister PR Kumaramangalam criticised the Delhi government's commitment to improve the state's power situation. He said even after the Delhi government appointing consultants and floating the concept of joint-ventures, it continues to face non-cooperation from the existing system.
Kumaramangalam said though the Delhi government has made several moves to restructure the power sector, the attitude of the Delhi Vidyut Board towards the entire issue does not allow any progress as the consultants to the Board are not even allowed access to the accounts of the board. He said even though ICICI had been appointed to assist the board, it "has not been allowed close the account books."
Kumaramangalam has blamed the state government employees and the Delhi Vidyut Board for this impasse.
He said any move made by the government to restructure the power sector leads to a situation where they face "an army of employees that it is against it."
Due to this, the minister said the state government could adopt a different model including that suggested by the SBI Caps for Kanpur based on the business potential assessment of the distribution zone.
