MPERC trues up JPVL's Bina 2x250 MW TPS FY24-25 tariff, raising net capacity charges to ₹683.28 Cr from ₹650.65 Cr allowed in MYT Order dated 28.02.2025
In the matter of petition filed by Jaiprakash Power Ventures Ltd., True Up Petition under Section 62 and Section 86(1)(a) of the Electricity Act, 2003 read with the Madhya Pradesh Electricity Regulatory Commission (Terms and Conditions for Determination of Generation Tariff) Regulations, 2024 (RG-26(V) of 2024} for True-up of Tariff in respect of FY 2024-25 determined by the Hon\'ble Commission vide Multi Year Tariff Order dated 28-02-2025 of its 2x250 MW (Phase-1) Coal Based Power Project at Bina, Dist. Sagar, Madhya Pradesh, due to additional capital expenditure incurred by the Petitioner du
JPVL sought true-up of FY2024-25 capacity charges for its 500 MW Bina coal plant (65% tied to MPPMCL under 2011 PPA) under Regulation 9.5 of the 2024 Tariff Regulations, citing net additional capitalization of ₹46.79 Cr (against MYT-allowed ₹651.19 Cr fixed charges). It also sought recovery of electricity duty, cess, water charges, filing fees and lease rent. MPPMCL contested several capex items (roads, CHP works, insurance spares, vehicles, office equipment) as imprudent, below regulatory thresholds, or lacking DPR/documentary support.
- Approved net Annual Capacity (Fixed) Charges of ₹683.28 Cr for FY24-25 vs ₹650.65 Cr in the MYT Order - a true-up increase of ₹32.63 Cr
- Allowed ROE ₹198.69 Cr, Depreciation ₹177.76 Cr, Interest on Loan ₹39.05 Cr, O&M ₹217.67 Cr, Interest on WC ₹51.52 Cr after examining audited accounts and ACD Register
- Admitted de-capitalization of only ₹0.05 Cr (not the ₹1.38 Cr book-level figure), rejecting decapitalization of previously disallowed assets (CBMS, minor IT items)
- Disallowed Ash transportation expenses for this order; directed petitioner to submit auditor-certified details/bills to MPPMCL separately under Reg. 66.4
- Held that loss of ₹10.34 Cr due to inferior controllable performance parameters (Station Heat Rate etc.) shall NOT be passed on to beneficiaries, as Regulation 58.2 mandates sharing of gains only, not losses
- Recovery of Annual Capacity (Fixed) Charges restricted to 65% contracted capacity (₹444.13 Cr at normative PAF; final true-up recoverable ₹421.98 Cr vs ₹422.92 Cr earlier recovered, a marginal ₹0.94 Cr adjustment)
- JPVL to give 7 days' public notice before implementing the order per Regulation 1.30 of MPERC 2004 Regulations
- Petitioner to recalculate bills for energy supplied to Discoms/MPPMCL for the entire period 01.04.2024 to 31.03.2025
- Surplus arising from this true-up to be passed on to MPPMCL/Discoms in six equal monthly instalments during FY2025-26 onwards
- Petitioner to submit compliance report to the Commission confirming implementation
- Petitioner directed to separately furnish auditor-certified Ash transportation bills/documents to MPPMCL under Reg. 66.4
- Loss on controllable parameters (₹10.34 Cr) to be borne by generator; no consumer pass-through required
- • C&I consumers/open-access users procuring power via MPPMCL/Discoms from this station will see a net upward tariff true-up (~₹32.63 Cr increase for FY24-25), though partly offset by a marginal recoverable adjustment (-₹0.94 Cr) at actual PAF
- • Reinforces that MPERC applies strict prudence checks on additional capex (vehicles, office equipment, minor tools <₹20 lakh) - developers should expect similar scrutiny/disallowance risk on discretionary capex in future true-ups
- • Confirms generators bear downside risk on controllable operating parameters (heat rate, aux consumption) - poor performance losses are not socialized to beneficiaries, protecting Discom/consumer costs
- • Sets precedent that recovery of capacity charges is strictly limited to contracted 65% long-term PPA capacity, relevant for entities assessing merchant/open-access exposure on the remaining capacity of this plant
A routine but instructive true-up showing MPERC's tightening posture on non-core capex (vehicles, office equipment, roads) even as it grants overall tariff increases via ROE/depreciation true-ups. For C&I buyers sourcing through Discom PPAs, the net effect is a modest fixed-charge uptick, but the order's insistence on prudence checks and non-pass-through of performance losses signals disciplined regulatory oversight likely to recur across MP generators' FY25-26 true-ups.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.