MADHYA PRADESH ELECTRICITY REGULATORY COMMISSION BHOPAL

Transcription

1 MADHYA PRADESH ELECTRICITY REGULATORY COMMISSION BHOPAL under Coal Mines (Special Provisions) Second Ordinance, 2014 and Rules framed SMP No. 50 of 2015 DAILY ORDER (Date of Hearing: 24 th November, 2015) Company (Date of Daily Order: 27 th November, 2015) Respondents 1. M/s Essar Power M.P. Ltd. Company 2. M.P. Power Management Company Ltd., Jabalpur Shri Siddharth Patra, DGM (Legal) appeared on behalf of M/s Essar Power M.P. Ltd. Shri Manoj Dubey, Advisor (Law) and Shri Gagan Diwan, A.O appeared on behalf of M.P. Power Management Company Ltd., Jabalpur. Vide letter No. F-03-08/2013/13 dated 18 th May 2015, Government of Madhya Pradesh (GoMP), Energy Department issued directions to the Commission under Section 108 of the Electricity Act, 2003 to review and determine energy charges for supply of electricity by a Generating Company to a Distribution Licensee under already concluded Power Purchase Agreements (PPA) in respect of the following cases where the coal is being sourced from Coal Mines auctioned or allotted under Coal Mines (Special Provisions) Second Ordinance, 2014: (i) Generation capacity having cost plus Power Purchase Agreements under Section 62 of the Electricity Act, 2003 Generation capacity contracted through tariff bid based Power Purchase Agreement under Case-1/Design Build Finance Own and Operate (DBFOO) bids invited under Section 63 of the Act. 2. Vide order dated 9 th August 2011 in Petition No. 33/2010, the Commission adopted the levelized tariff for procurement of 150 MW power by M.P. Power Management Co. Ltd. (MPPMCL) from 2x600 MW Thermal Power Station of M/s. Essar Power M.P. Ltd. Company in terms of Section 63 of the Electricity Act, The Commission has registered the subject Suo-Motu Petition to review the tariff adopted vide above-mentioned order of the Commission. C:\Users\MPERC \Desktop\orders hearing dtd \SMP-50 of 2015.docx1

2 4. Notices were issued to M.P. Power Management Company Ltd., Jabalpur and M/s. Essar Power M.P. Ltd. Company, Distt. Singrauli. In response, by affidavit dated 28 th September 2015 Respondent No. 1 i.e. M/s. Essar Power M.P. Ltd. Company had sought adjournment in the matter with the following contention: (i) (iii) (iv) (v) That the bid submitted by the applicant for supply of 150 MW power to MPPMCL/ Respondent was premised on availability of coal from the Mahan Coal Block, and usage of coal from the said Mahan Coal Block. However, the Hon ble Supreme Court vide order dated in ManoharLal Sharma Vs. the Principle Secretary & Ors being W.P. (Crl) No. 120 of 2012 reported as (2014) 9 SCC 516 declared the allocation of the coal blocks were done in an arbitrary manner by the Government of India. Pursuant to the judgement of the Hon ble Supreme Court which led to the de-allocation of captive coal mine, the PPA as was entered into by the applicant and the MPPMCL on the premise that the power will be supplied based on the designated fuel source has been substantially altered as compared to the bargain arrived at the time of entering into the PPA. Immediately after de-allocation of the captive coal block, the applicant vide notice dated notified the MPPMCL of the occurrence of a force majeure event in terms of Article 12.5 of the PPA. The applicant made it clear that in the absence of the coal block, it was not in a position to comply with its obligations under the PPA. Subsequently, the applicant vide letter dated 26 th March, 2015, issued the notice for frustration of the PPA, which has become void because of being effected by force majeure events and led to frustration/ termination of the PPA because of the impossibility of its performance. That, the notice of Suo-Motu petition hearing was received by the applicant on 27 th August Further, vide the said notice the applicant was directed to file a detailed reply alongwith certain information and document for the purpose of determination of the variable charges. C:\Users\MPERC \Desktop\orders hearing dtd \SMP-50 of 2015.docx2

3 (vi) (vii) The applicant is engaged in discussion with MPPMCL and would need some time to come back to the Hon ble Commission in connection with the Suo-Motu petition. That in the interest of Justice, the matter may be adjourned on and the next date may be fixed in the matter. 5. By affidavit dated 23 rd September 2015, Respondent No. 2 i.e. M.P. Power Management Company Ltd., Jabalpur broadly submitted the following: (i) (iii) (iv) That, the Mahan Coal Field, in view of the order dated in Civil Appeal No. 120/2012 with 463/2012, 515/2012 and 283/2013 in the case of Manoharlal Sharma Vs. the Principal Secretary & ors. were deallocated on Thereafter, Tokisud (N) mine was allocated through bidding process to M/s. Essar Power MP Ltd. from That, further in view of GoMP s direction to Hon. MPERC under Section 108 of Electricity Act, 2003, Hon. Commission may be pleased to revise the tariff downwards, under the provisions of Coal Mines (Special Provision), Ordinance 2014, considering the change in allocation of coal block as Change in Law. That, for the present, the answering respondent is not in better possession of the facts and figures to the cost of coal on re-allocation and the exact date on which the mines were actually deallocated and thereafter re-allocated to the Generator. The same are in better possession of the Generator and awaited to be brought on record in its instance. That, the answering respondent has written to Respondent No. 2 seeking facts and data regarding various aspects of coal cost and upon receipt of information, shall submit its comments. 6. In view of the request made by M/s. Essar Power M.P. Ltd., the date of hearing in the subject matter was rescheduled on 24 th November During the course of hearing held on 24 th November, 2015, the Commission observed that M/s. Essar Power M.P. Ltd. by affidavit C:\Users\MPERC \Desktop\orders hearing dtd \SMP-50 of 2015.docx3

4 dated 20 th November 2015 has again sought four weeks time for providing the required information, data and documents in the matter. 7. Having gone through the submissions made by the parties, M/s. Essar Power M.P. Ltd. Company is directed to file the following information/ documents with the Commission: (i) Computations of Quoted Non-Escalable Fuel Energy Charge for each year in terms of the PPA executed and submitted to the Commission (in Petition No. 33/2010), in MS excel with appropriate formulae and linkages along with detailed write-up on the assumptions regarding Station Heat Rate, year wise landed coal price, year wise fuel mix, Gross Calorific Value of coal, Auxiliary Consumption, and Secondary fuel oil, if any. M/s. Essar Power M.P. Ltd. was allocated the Coal Mine Mahan under the earlier procedure for allocation of Coal Mines by the Government of India. Hon ble Supreme Court of India vide its Judgment dated 24 th September, 2014, among others, cancelled the allocation of this Coal Mine. With respect to the aforesaid de-allocated Coal Mine vide Judgment of Hon ble Supreme Court of India, the following is required to be submitted: a) Copy of Fuel Supply Agreement executed with respect to de-allocated Coal Mine. b) Detailed computations of Landed Coal price (Rs./MT) for each year during the term of the PPA with MP Power Management Company Ltd. along with detailed write up on the assumptions therein for the de-allocated Coal Mine. c) Statement of the landed coal price for the coal procured from the Mine (Rs./MT) during each month from COD of Unit 1 till de-allocation of Coal Mine, (if applicable). d) Copies of sample coal bills for the coal procured from the Mine, (if applicable). (iii) (iv) Technical details of the generating station in the format prescribed in Form A of the MPERC (Furnishing of Technical Details by Generating Companies) Regulations, Documentary evidence for the guaranteed performance parameters of the generating station. C:\Users\MPERC \Desktop\orders hearing dtd \SMP-50 of 2015.docx4

5 (v) With respect to the allotted Coal Mine under the Coal Mines (Special Provisions) Second Ordinance, 2014, the following information is required to be submitted for the mine allotted to M/s. Essar Power M.P. Ltd. Company: a) Copy of Tender Document floated by the Nominated Agency for auction of the allotted Coal Mine. b) Copy of Mine Dossier. c) Copy of allotment order issued. d) Copy of Coal Mine Development and Production Agreement. e) Detailed write up on the current status of Mine Development and year wise phasing of coal production. f) Detailed write up on crushing facilities at the Coal Mine. g) Detailed write up on washery facilities for improving the coal quality, if any/proposed alongwith cost benefit analysis. h) Detailed write up on transportation infrastructure for transporting coal from the Mine to the generating station. i) Detailed write up on statutory levies and duties payable from the coal extraction stage till coal arrival at the generating station. (vi) As per Corrigendum 3 to Clause of the Standard Tender Document (for Power Sector) issued on 31 January, 2015, in the event of Final Price Offer of any qualified bidder is equal to Rs. 0 (Indian Rupees Zero), the selection of the preferred bidder shall be based on the highest Additional Premium payable by the bidder on the basis of coal extracted from the Coal Mine in addition to all other payments required to be made. The quoted additional premium shall not be reckoned for the purpose of determination of tariff of electricity. In this regard, the detailed break up of computations of Landed Coal price (Rs./MT) from the coal mine allotted to M/s. Essar Power M.P. Ltd. Company along with detailed write up on the assumptions therein be submitted separately for each year from FY onwards for the entire life of the Project. C:\Users\MPERC \Desktop\orders hearing dtd \SMP-50 of 2015.docx5

6 S. No. Particulars Unit Value Basis 1 Base Price (Ex-Mine) Rs./MT 2 Crushing and stocking charges Rs./MT 3 Transportation to the Rs./MT generating station 4 Taxes and duties Rs./MT 5 Total Rs./MT Supporting Documents 8. The following directions are issued to the parties in this matter: (i) M/s. Essar Power M.P. Ltd. Company is directed to file the above-mentioned details/ documents to the Commission at the earliest but not later than 10 th December, M/s. Essar Power M.P. Ltd. Company is also directed to serve the copies of all above-mentioned details/ documents, on all other Respondents in this petition at the earliest but not later than 10 th December The case is fixed for hearing on 15 th December (Alok Gupta) Member (A. B. Bajpai) Member (Dr. Dev Raj Birdi) Chairman C:\Users\MPERC \Desktop\orders hearing dtd \SMP-50 of 2015.docx6