Southern States
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Karnataka-Bangalore
KERC seeks more details on KPTCL-JTPCL PPA
By Our Staff Reporter
BANGALORE, DEC. 20. The Karnataka Electricity Regulatory Commission (KERC) has asked for more details to ``remove the mysteries'' in the Power Purchase Agreement (PPA) between the Karnataka Power Transmission Corporation Limited (KPTCL) and the Jindal Tractebel Power Company Limited (JTPCL).
The two parties have been asked to furnish the extra information at a hearing on January 18.
During a hearing here on Thursday, the KERC Chairman, Mr. Philipose Mathai, clarified that the commission did not mean there was ``something wrong'' in the PPA or the negotiation process between the two companies. He acknowledged that both parties had been forthcoming in submitting information, but the KERC required more details as this was a ``matter of serious financial implication for the State''.
He said the commission was surprised to note that there were no records available with these companies. If the negotiated proceedings had been transparent, it would have been easier to resolve this ``difficult case''.
Earlier, Mr. H.R.Gopal, KERC member (Technical), read out two sets of questions. The questions to JTPCL are: JTPCL accounts say that coal for power generation is procured by Jindal Vijayanagar Steel Limited (JVSL); details required.
Comparative analysis of the project cost as given to the Central Electricity Authority (CEA) has Rs. 70 crore as development expenses. This is absent in initial estimates.
Though the detailed project report speaks of using non-coking coal from Australia, South Africa or Indonesia, the invoices provided to the KERC show that soft coking coal (with ash content less than 12 per cent) is being procured. Explain why and give economics involved.
Other questions are related to the tariff. JTPCL is to provide 657 million units (MU) to the KPTCL, and 920 MU to JVSL. To generate a total of 1577 MU, the JTPCL plant should run at 75 per cent plant load factor (PLF). For higher requirements, the PLF will be higher. As per the Union Government's two-part tariff, generation beyond the normative level is eligible for incentives.
But in the revised tariff that JTPCL submitted to the CEA, incentive was considered as 0.7 per cent for every one per cent PLF increase. The KERC wants JTPCL to keep the incentive in the range of 0.35 per cent to 0.4 per cent when negotiating the tariff for supply beyond 657 MU.
The questions to KPTCL are: The draft PPA says that the agreement comes into force on August 1, 2000. But the JTPCL supply to the grid began on April 15, 2000. Hence, provide details of tariff for power supplied between April 15, 2000 and July 31, 2000.
When was the first JVSL unit put under commercial operation? From when were grid support charges collected from JTPCL? Provide up-to-date account of amounts collected.
What is the State's power supply situation, and what is the demand forecast or availability year-wise from August 2000 up to 2005?
Details for arriving at grid support charges of 1.73 crore/year, and reasons for the five per cent increase per tariff period.
What is the tariff recommended to the Government by the KPTCL for buying power from JTPCL? And what is the rate per kilo-watt hour (kWh) that CRISIL had recommended to the KPTCL on JTPCL tariffs?
As explained earlier, the JTPCL plant should work at 75 per cent PLF to supply power to JVSL and KPTCL. Power supplied over and above 657 MU to the KPTCL will be charged at Rs. 2.20 per kWh. So what is the rate if variable charges and incentives are paid as per the 1992 two-part tariff notification of the Union Government?
The KERC will hold a hearing on energy audit on Friday.
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