Adding a new twist to the ongoing sale of stressed power assets, the Uttar Pradesh Electricity Regulatory Commission (UPERC) has taken a view that if a bidder acquires assets at a discount then it must pass on the benefit to customers by reducing power tariffs.
Renascent Power Ventures, an arm of Tata Power-backed Resurgent Power Ventures, which had acquired a 75.01 per cent stake in Prayagraj Power, may have to offer a discount on the power tariff to State Discom Uttar Pradesh Power Corporation Ltd (UPPCL) to pass the benefits of acquiring the asset at a discount to consumers.
In its order dated March 7, the Uttar Pradesh Electricity Regulatory Commission (UPERC) has directed State Bank of India, the leading lender to Prayagraj Power, to submit its offer of reduction in fixed charges and also the computation on the basis of which such reduction is offered, within one week.
