CERC allows Tata Power to sell power from its Mundra UMPP at prices that reflect higher cost of imported coal

19 Apr 2023 , 02:24 AM

Tata Power has been allowed to sell power from its Mundra Ultra Mega Power Plant (UMPP), by the regulator CERC at prices that reflect the higher cost of imported coal. This decision has been made under section 11 of Electricity Act, 2003.

Currently, the country is witnessing record power demand as the country is grappling with a severe heatwave in many parts. Power consumption from April 2022 to February 2023 stood at 1,377.43 billion units, higher than the 1,374 billion units recorded in the entire financial year 2022.

The Mundra UMPP was shut temporarily due to mounting losses and lower realisations.

Tata Power is still waiting for state discoms to sign the supplementary Power Purchase Agreements (PPA).

According to section 11 of the Electricity Act, 2003, government is allowed to ask power generating companies to operate and maintain output in accordance with the directions given under extraordinary circumstances.