PSERC refuses extension of timeframe to TSPL

The commission delivered its judgment on
petition No 46 filed by the TSPL
DP Correspondent

Patiala
“Power Purchase Agreement (PPA) and letter of assurance (LoA) should be operated in tandem for Talwandi Sabo Thermal Project ”, the Punjab State Electricity Regulatory Commission (PSERC) directed while disposing of petition filed by Talwandi Sabo Power Limited (TSPL).

The PSERC has strived to maintain a balance of interest of the consumers, the distribution utility and generator in the state. The decision of the commission that LoA and PPA are part and parcel of contract is first of its kind in the country.

The commission delivered its judgment on petition No 46 filed by the TSPL alleging that the PSPCL had failed to fulfil its obligation of arranging sufficient quantity of quality coal for the 3X660 (1,980) MW Talwandi Sabo Thermal Plant.

The petitioner TSPL had contended that the firm will not be able to operate the plant beyond a certain PLF as Mahanadi Coalfields Ltd (MCL) was assuring to supply 80 per cent of the coal supply. It further submitted that as per model fuel supply agreement MCL would assure only 80 per cent of Annual Contracted Quantity (ACQ).

Moreover, 80 per cent of the ACQ would include 65 per cent domestic coal and 15 per cent imported

coal. The reduction in quantity and degradation of coal would increase

the idle capacity of the plant.

Though PPA provides for use of domestic coal to generate electricity only the LoA envisaged the supply of coal from the mines of Mahanadi Coalfields Ltd (MCL) and in the event of short supply the balance quantity of coal shall be met through imported coal available with the MCL.

The commission observed that since LoA and PPA should be operated in tandem occasionally imported coal available with MCL could also be supplied.

The commission further directed the TSPL to vigorously pursue the matter with all concerned government authorities for maintaining the status quo with regard to quantity and quality of coal committed as per the LoA.

The PSPCL will fully co-ordinate and co-operate with the TSPL in this matter.

The availability of coal quality was well known to the petitioner and therefore demand of extension in time frame sought by the petitioner was not justified and hence not accepted.

As regards the prayer for allowing deemed generation benefits and payment of capacity charges and incentives there on to the petitioner in case the

project cannot operate at its full capacity due to short fall in the supply of fuel, the same would be as per the terms of the PPA.