APTEL says SERCs cannot modify tariffs under competitive bidding

The Appellate Tribunal for Electricity (APTEL) has asserted that state electricity regulatory commissions (SERCs) cannot alter tariffs determined through competitive bidding in the case of Resurgent Power Ventures’ 1,980 MW Bara thermal power plant (TPP). Resurgent Power had approached APTEL against the Uttar Pradesh Electricity Regulatory Commission’s (UPERC) demand to reduce the power tariff of the Bara TPP that had been acquired from Prayagraj Power Corporation (part of Jaiprakash Associates Limited) under a debt resolution scheme carried out by lenders to the project. The project was initially bid at a tariff of Rs 3.02 per unit through tariff-based competitive bidding in 2010. However, the UPERC had asked Resurgent Power to reduce the tariff by Re 0.14 per unit after the takeover. The matter was taken to the Allahabad High Court which transferred it to APTEL.