Enron indicates lowering of tariff

MUMBAI, DEC. 31. The global energy major Enron, whose 2,184 MW project at Dabhol in Maharashtra has run into rough weather for its exorbitant tariff structure, has indicated lowering of power charges in the wake of drop in naphtha prices in the international markets.

Dabhol Power Company (DPC), a subsidiary of Enron, in a communication to the Maharashtra State Electricity Board (MSEB) dated December 28 has said that there was a possibility of scaling down its power tariff as naphtha prices had crashed from $304 to $170 a tonne internationally, State Energy Minister, Dr. Padmasinh Patil, told PTI here today.

``This reduction in naphtha prices will be passed on to DPC's tariff and hence the total charges can be lesser than perceived earlier", DPC sources said.

A high powered committee, proposed to be set up by the State government to gauge the impact of DPC's power purchase agreement (PPA) on the State, would also take into account the above mentioned fact, Mr. Patil said.

DPC sources said, the company had been buying naphtha at $310 a tonne from international supplier Glencore till it was forced to break the contract, as per the Ministry of Petroleum and Natural Gas's directive to purchase the fuel from the State-owned Indian Oil Corporation (IOC) only.

- PTI

Send this article to Friends by E-Mail

Section  : Business
Previous : CTVs: volume sales to drive margins of cos
Next     : Lyons Range ends year 2000 on better note