MPERC trued-up FY2024-25 tariff for BLA Power's 90MW Gadarwara coal plant, allowing incremental fixed-cost recovery of ₹0.48 Cr over MYT-approved amount
Petition for True-up of tariff for FY 2024-25 for sale of Contracted Capacity to MP Power Management Co. Ltd., from the Generating Station of BLA Power Pvt. Ltd., comprising of 2 Units of 45 MW each (i.e. Unit-1 & Unit-2). (Petitioner: 1) BLA Power Pvt. Ltd)
BLA Power operates a 2x45 MW coal-based thermal station at Gadarwara, Narsinghpur, supplying 30% of installed capacity to MPPMCL under a 2011 PPA at regulated tariff. Following the MYT Order dated 13.02.2025 (Petition 51/2024) fixing provisional FY2024-25 tariff subject to true-up, BLA Power filed this petition under Sections 62 & 86(1)(a) of the Electricity Act and the MPERC Generation Tariff Regulations 2024 to true-up capacity charges based on FY2024-25 audited accounts, and to recover other pass-through charges including fly ash transportation expenses.
- Approved revised Annual Fixed Charges of ₹117.33 Cr for FY2024-25 vs ₹115.91 Cr allowed in MYT Order, an increase of ₹1.42 Cr
- Allowed Interest on Loan Capital at ₹14.32 Cr (vs ₹14.04 Cr in MYT) as per Regulation 35
- Allowed O&M Expenses (incl. water & security charges) at ₹41.88 Cr (vs ₹40.79 Cr) and Interest on Working Capital at ₹10.73 Cr (vs ₹10.68 Cr)
- Admitted Non-Tariff Income of ₹0.43 Cr (50% share = ₹0.21 Cr) after reconciliation with audited accounts
- Approved fly ash transportation expense recovery of only ₹1.06 Cr (pertaining to MPPMCL's 30% PPA share) out of ₹6.87 Cr claimed; balance ₹0.37 Cr payable by MPPMCL
- Rejected pass-through of controllable-parameter losses (heat rate, aux consumption) since actual performance was inferior to norms and Regulations only permit sharing of gains, not losses
- Petitioner to give 7-days' public notice under Regulation 1.30 (2004 Regulations) before implementing the order
- Petitioner to recalculate bills for energy supplied to Discoms/MPPMCL for the period 01.04.2024 to 31.03.2025
- Gap amount (₹0.48 Cr incremental true-up) to be recovered from MPPMCL/Discoms in six equal monthly instalments during FY2025-26 onwards (Regulation 9.8)
- Petitioner to submit compliance report to Commission confirming implementation
- Petitioner to maintain separate audited records for fly ash transportation/utilization expenses per Regulation 66.4
- MPPMCL to pay balance ₹0.37 Cr fly ash reimbursement due to petitioner
- • C&I consumers in MP will see marginal tariff pass-through via Discom ARR as MPPMCL recovers the true-up gap (₹0.48 Cr) in 6 monthly instalments from FY2025-26
- • Confirms MPERC's strict cost-plus, audited-actuals based true-up methodology for long-term PPA capacity — relevant precedent for other IPPs/Discom PPAs feeding into retail tariffs
- • Demonstrates regulatory rigor on ancillary claims (fly ash, non-tariff income) — only proportionate to contracted capacity is allowed, useful for developers structuring multi-buyer PPAs
- • No windfall risk from performance losses to beneficiaries — inferior heat rate/aux consumption on this plant will not increase C&I tariffs, but any future gains would only be 50% shared
A routine but instructive true-up order confirming MPERC's conservative, audit-driven approach: incremental relief is modest (~1.2% of AFC) and driven mainly by O&M and interest true-ups, not RoE or depreciation changes. The disallowance of full fly ash costs (only PPA-proportionate) and the no-loss-sharing stance on performance parameters signal that generators bear underperformance risk while cost pass-throughs are scrutinized line-by-line. For C&I buyers with exposure to MPPMCL-sourced power, impact is negligible; for developers, the key takeaway is document everything and reconcile every claim to audited accounts and PPA share to avoid disallowance.
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.