MADC Seeks Approval For Its Power Procurement Plan

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Maharashtra Electricity Regulatory Commission has received a petition from  Maharashtra Airport Development Company Ltd seeking approval for its power procurement plan and for undertaking competitive bidding for Short Term Power Procurement for six months starting from 1 September, 2020 to 28 February, 2021.

MADC’s main prayers were as follows : a) Approve the plan for short term procurement of power in its capacity as a Distribution Licensee as per the ‘Guidelines for short term (i.e. for a period of more than one day to one year) procurement of power by Distribution Licensees through Tariff based bidding process’ dated 30th March 2016 issued by the Ministry of Power for the period of six months starting from 01.09.2020 to 28.02.2021; b) Allow the deviation sought as per Clause No. 8 of the ‘Guidelines for short term (i.e. for a period of more than one day to one year) procurement of power by Distribution Licensees through Tariff based bidding process’ dated 30th March 2016 issued by the Ministry of Power’ c) Allow MADC to charge consumers in the MIHAN SEZ area, the tariff that is applicable for the respective category of consumers in the MSEDCL area of supply, as modified from time to time, as the ‘maximum ceiling tariff’ in its area of supply, till such time the ARR and the tariff is determined by this Hon’ble Commission, and approve the appropriate tariff schedule as applicable in the MSEDCL area of supply.) In case the requirement of power in the MIHAN SEZ increases from 16 MW, then in that case MADC be allowed to procure the same through IEX. e) Direct MSETCL for extending its co-operation and support to MADC in supplying power to consumers in MIHAN SEZ.

Commission after observation ordered that Existing Short Term PPA with MSEDCL is extended for a further period of six months from 1 September, 2020 to 28 February, 2021 at Rs 4.89/ kWh which can be terminated by advance notice of 30 days or any lower period agreed mutually by parties and MADC is directed to separately show the difference in amount of the power purchase cost.

It also stated that MADC’s will not be allowed to include entire power purchase expenses in the ARR due to  inefficiencies in power procurement.

The Commission directs MADC to work on establishing a separate connectivity link with the State Transmission System before the end of this extended period of PPA and it may reduce disallowance in power procurement by procuring part of its power requirement through power exchanges or speed up process of fresh competitive bidding and enter into fresh contract. 

Commission concluded by directing MADC to file its MYT Petition on or before 30 November 2020. 

To know more about the order refer to the document below:

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