DERC Approves Revised Power Purchase Agreement Between TPDDL And NPCIL For Narora Power Supply

The Delhi Electricity Regulatory Commission issued an order regarding a petition filed by Tata Power Delhi Distribution Ltd. (TPDDL) seeking approval of a draft Power Purchase Agreement (PPA) with Nuclear Power Corporation of India Ltd. (NPCIL) for power procurement from Narora Atomic Power Station (NAPS) Units 1 & 2. The petition was filed under Section 86 of the Electricity Act, 2003, along with other relevant provisions.

TPDDL, a distribution licensee operating in North and North West Delhi, had an existing PPA signed in 2005 through Delhi Transco Limited (DTL) for power supply from NAPS and Rajasthan Atomic Power Station (RAPS). The PPA had a validity of 15 years, expiring in April 2020. As the expiry date approached, TPDDL sought an extension and requested clarity on the remaining operational life of the plants and future tariffs. NPCIL responded that the renewal process was underway but did not provide specific details.

In April 2020, the Commission granted an ‘in-principle’ approval to extend the PPA under existing terms. Later, NPCIL provided a draft PPA, which contained material deviations from the original agreement. TPDDL contested these deviations, requesting NPCIL to retain the original terms. However, NPCIL argued that new regulations and guidelines from the Central Electricity Regulatory Commission (CERC) and the Department of Atomic Energy (DAE) required modifications to the agreement.

After multiple discussions and hearings, the Commission noted that the parties had reached a consensus on a revised draft PPA, with mutually agreed-upon amendments aligning with government regulations, particularly the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022. Key revisions included updates on payment security mechanisms, error resolution in billing, and late payment surcharge terms.

The Commission acknowledged that the revised draft PPA largely maintained the structure of the original agreement, with necessary modifications to comply with regulatory requirements. Considering the agreement between the parties, the Commission approved the revised PPA. TPDDL was instructed to submit the final signed agreement to the Commission for record-keeping.

The order, signed by Chairperson Justice (Retd.) Jayant Nath and members Ram Naresh Singh and Surender Babbar, ensured continuity in power supply arrangements while aligning contractual terms with evolving regulatory frameworks.