Appellate Tribunal for Electricity issues notice to Adani Power (Mundra)

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The Appellate Tribunal for Electricity has issued a notice to Adani Power (Mundra) on the appeal challenging the Central Electricity Regulatory Commission's (CERC) order approving the supplementary power purchase agreement (SPPA) between the company and Gujarat Urja Vikas Nigam.

The development comes after the Tribunal accepted an appeal by All India Power Engineers Federation against the SPPA. 

In its appeal, the federation said the SPPA will raise power charges, while the original tariff was based on competitive bidding.

The appeal pointed out that as a result of the SPPA, the electricity tariff in Gujrat will increase by almost Rs 2 and consumers will be severely affected. 

The appellant submitted that the resultant hike in tariff due to the SPPA would destroy the regime of the 'Electricity Act', including the fundamental provisions relating to tariffs as well as sanctity of competitive bidding system. 

The Appellate Tribunal has fixed August 1, 2019, as the next date of hearing.