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As cost of coal bought under e-auction and imported coal was priced higher, VIPL demanded "higher compensation" and now Nirupam fears that consumers wil have to bear this extra cost with a further tariff hike.

New Delhi, January 11, 2019: Consumers of Adani Electricity along with city Congress president Sanjay Nirupam will attend an important public hearing at MERC in Cuffe Parade on Tuesday morning as it involves decision on whether the electricity tariff for 30 lakh consumers in suburbs should be hiked or not.

"We are already burdened with the tariff hike of 2018, and we do not want any more hikes,'' said Nirupam, who said he will make a representation at the hearing as an Adani consumer.

He further stated that the issue pertains to Reliance Infrastructure (R-Infra), moving a petition before MERC some months ago. As per the petition, R-Power’s subsidiary Vidarbha Industries Power Ltd (VIPL) had signed agreement with R-Infra to supply 600 MW power in 2013 at Rs.2.10 per unit.The VIPL was supposed to get coal linkage from Coal India Ltd. However, it failed to secure the linkage and company had to run the plant on coal purchased under e-auction system and imported coal. As cost of coal bought under e-auction and imported coal was priced higher, VIPL demanded "higher compensation" and now Nirupam fears that consumers wil have to bear this extra cost with a further tariff hike.

Said a VIPL spokesperson : "Our petition refers to Change in Law compensation as per the law laid down by Supreme court in April, 2017, in matter of Energy Watchdog Vs CERC. Based on the ruling given by the apex court, MERC has already granted relief to several power generation companies in the state according to the reports published in energy.economictimes.indiatimes.com.

"The claim amount of Rs 2,800 crore stated by Nirupam at a media conference on Monday is devoid of facts and highly exaggerated. The public notice issued in newspapers provides principal amount of claim as Rs.1,256 crore. and the applicable carrying cost. VIPL is fully compliant to the contract and there is no default."

Said an official from Adani Electricity, which has now taken over power distribution business from Reliance : "VIPL has demanded additional cost recovery over the MERC approved tariff, for which they have filed a petition that is pending with the regulator. We have given our submissions to MERC and the public hearing in the matter is scheduled for Tuesday."
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