MERC wants power pacts made public

MERC wants power pacts made public
EXPRESS NEWS SERVICE

MUMBAI, JAN 12: In a significant order, the Maharashtra Electricity Regulatory Commission (MERC) has on Friday ruled that power purchase agreements and other such agreements which have financial implications to end-consumers should be made public and not be held confidential. The order issued was in the context of a petition filed by Pune-based Prayas, a non-governmental organisation, especially in view of the much-controversial Dabhol power purchase agreement (PPA).

The petition had challenged the unreasonable and higher power purchase expenditure incurred by the Maharashtra State Electricity Board (MSEB) and the unreasonable revenue requirement of the board which in turn forces a rise in tariff.

The order assumes significance since the petition had asked for all necessary documents of Reliance, Ispat and Enron power projects and which shall be subjected to further scrutiny for the legal validity of these, sources said.

Further justifying the need for making PPAs public, the petition states that power purchase decisions have serious implications on the state’s economy and efficiency, consumer interests, power tariff, and transparency of subsidies.Some of the important documents that are bound to be made public include copies of most recent versions of all contracts, clearances, and commitments (such as PPAs, Government and MSEB support agreements, guarantee and counter guarantee agreements, escrow agreements, CEA and other statutory clearances) in relation to independent power projects (IPP) of Dabhol Power Project (Phase I and II), Reliance Patalganga Project, Bhadrawati Power Project, liquid fuel-based projects etc.