New Delhi: Reliance Power on Monday said electricity regulator CERC (Central Electricity Regulatory Commission) has approved an increase of 9 paise per unit, or 7 per cent, in tariff over its 25-year power purchase agreement for the 3,960 MW Sasan ultra mega power project (UMPP) that translates into a compensation of over Rs 300 crore per annum.
"Central Electricity Regulatory Commission (CERC) has approved change in law during Operations petition filed by Sasan Power Ltd," the company said in a statement.
The order allows it to claim increase in electricity duty rate and energy development cess on sale of power to Madhya Pradesh and on auxiliary power consumption, it said.
A one-time compensation of Rs 271 crore is granted by the regulatory commission till July 31, 2015, the company said.
"Mechanism for future payments towards change in Electricity Duty Rate & Energy Development Cess has also been approved by the regulatory commission in its order, which provides compensation of over Rs 300 crore per annum, at full capacity, over 25 years PPA term, resulting in effective tariff increase of about 9 paise per unit (7 per cent increase)," it said.
The Sasan UMPP, implemented in Singrauli district of Madhya Pradesh, is the 4,000 MW plant operating at over 100 per cent PLF.
Reliance Power, part of the Reliance Group, is a private sector power generation and coal resources company.
The company has the largest portfolio of power projects in the private sector, based on coal, gas, hydro and renewable energy, with an operating capacity of 5,945 mw.
At 2:32 p.m., shares in Reliance Power were trading 0.34 per cent higher at Rs 58.65 apiece on the BSE, whose benchmark Sensex index was down 0.09 per cent.