Regulatory authorities have rejected JSW Energy's plea to revise power tariffs because of difficulty in procuring fuel from Indonesia, a decision that analysts said was a setback for other companies seeking higher electricity rates on similar grounds.
JSW had approached the Maharashtra Electricity Regulatory Commission (MERC) after its dispute with the state distribution utility over revision of tariff for its 300 MW unit at Jaigad, Ratnagiri. MERC rejected this and said the power purchase agreement (PPA) was not contingent upon the supply of fuel at the specified price from the Indonesian supplier, and the action of Indonesian authorities did not trÂigger the force-majeure clause.
The decision of the regulator is being closely watched by power producers and analysts as companies such as Tata Power and Reliance Power are seekÂing a tariff revision for their units since cost of coal imported from Indonesia has risen unexpectedly.
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