Tata Power and Adani Power stand to benefit as the Appellate Tribunal for Electricity (Aptel) has allowed their imported coal-based power plants in Mundra, Gujarat, to recover higher fuel costs from consumers under force majeure provisions.
The tribunal held that a change in Indonesian law, which impacted the coal price of the two generators, does not constitute change in law under the power purchase agreements, but may constitute force majeure.
It struck down the compensatory tariff mechanism evolved by the Central Electricity Regulatory Commission (CERC) to the two firms, saying the regulator does not have powers to modify tariff discovered through tariff-based bidding.
In a statement to the BSE, Tata Power said Aptel allowed the appeals of distribution companies of its Mundra plant challenging compensatory tariff determined by CERC.
Follow