Uttar Pradesh Electricity Regulatory Commission cuts capital cost of Bajaj Hindusthan unit
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has reduced the capital cost of Bajaj Hindusthan’s Lalitpur thermal power unit by Rs 3,022 crore. The move would reduce state-run discom Uttar Pradesh Power Corporation’s (UPPCL) cost of electricity purchase from the plant by 28 paise or 13.5%, with resultant annual savings of Rs 550 crore. The relief will be available for the discom for 20 years.
The regulator’s order could also consumers, provided the UPPCL passes on the benefits to them via tariff revisions. The Lalitpur Power Generation Company (LPGCL) had filed a petition for the approval of tariff for the 1,980-MW super-critical thermal power plant before the regulator in 2019. In an order delivered last Thursday, the regulator determined a capital cost of Rs 12,727.5 crore as against Rs 15,750 crore claimed by the company. It also directed LPGCL to file a fresh tariff proposal in the light of the commission’s order for reduction capital cost.
