MPERC approves 3 pc hike in tariff

MADHYA PRADESH Electricity Regulatory Commission (MPERC) has approved a three per cent increase in tariff for thermal power generation while giving its ordering on a petition for tariff review filed by the MP Power Generating Company Limited (MPPGCL).

india Updated: Mar 10, 2006 15:42 IST

MADHYA PRADESH Electricity Regulatory Commission (MPERC) has approved a three per cent increase in tariff for thermal power generation while giving its ordering on a petition for tariff review filed by the MP Power Generating Company Limited (MPPGCL).

The MPPGCL had filed the petition for determination of its tariff for financial year (FY) 07 to FY09 under a multi year principle. The MPERC has determined station wise two-part tariff for the generating stations owned and operated by the MPPGCL.

According to the company’s proposal total thermal generation cost were 185 paise per unit for FY07, 184 paise per unit for FY08 and 177 paise per unit for FY09. The cost of hydel generation proposed was 98 paise per unit for FY07, 97 paise per unit for FY08 and 96 paise per unit for FY09.

Although the cost of coal has increased by nine per cent and the cost of oil has increased by 32 per cent over the corresponding cost approved by MPERC for FY6, the tariff for thermal power generation has been increased by only three per cent, the MPERC informed.

The commission has approved the rates for thermal generation as 163 paise per unit for FY07, 162 paise per unit for FY08, and 160 paise per unit for FY09. The cost of hydel generation has been determined as 57 paise per unit for FY07, 58 paise per unit for FY08, and 58 paise per unit for FY09 too. The per unit hydel cost for FY06 was 57 paise.

The average tariff of total generation that was Rs 1.43 for FY06 shall be Rs 1.47 per unit for FY07, Rs 1.46 for FY08, and Rs 1.45 per unit for FY09. The new rates would be effective from April 1, 2006, the date when control period for multi year tariff would start.

On the basis of efficiency norms specified by MPERC, the total net generation of MPPGCL is estimated to be 15488 MUs in FY06. This will increase every year over the next three years and would be 15633 MUs in FY07, 15790 MUs in FY08, and 15870 MUs in FY09. Due to this efficiency gain, the cost of thermal generation will decrease every year, MPERC informed.

The increase in cost of coal and oil and in taxes will be considered for inclusion in tariff in accordance with the formula for variable cost adjustment (VCA) as specified by MPERC.

First Published: Mar 10, 2006 15:42 IST