MPERC trued-up FY2024-25 tariff for Jaypee Nigrie 2x660 MW TPP, allowing part of claimed additional capex while rejecting Amelia coal mine capitalization and directing 50:50 sharing of performance gains
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 Coal Based 2x660 MW Super Critical Thermal Power Station at Nigrie, District Singrauli, Madhya Pradesh, due to additional capital expenditure i
JPVL sought true-up of FY2024-25 tariff for its 1320 MW (2x660MW) coal-based Nigrie TPP, originally fixed in the MYT Order dated 28.02.2025 under the MPERC Generation Tariff Regulations, 2024. JPVL claimed net additional capitalization of Rs.50.50 Cr (Rs.51.14 Cr capex less Rs.0.64 Cr de-capitalization) covering BTG/BOP/civil items, a school upgrade, wagon tippler electrification, transmission line diversion and Rs.240.30 Cr towards Amelia coal mine assets/premium, seeking revised Annual Capacity Charges, recovery of filing/publication fees, electricity duty, cess, water charges and lease rent. MPPMCL contested most claims as impermissible under Regulations 24/25, especially the Amelia mine claim which is sub-judice before APTEL/Supreme Court.
- Examined additional capitalization claims against Regulations 24 & 25 of the 2024 Tariff Regulations, Annual Audited Accounts and Asset-cum-Depreciation Register for FY2024-25
- Rejected the entire Rs.240.30 Cr claim towards Amelia coal mine assets and 'Additional Premium', as the issue is sub-judice before APTEL/Supreme Court; no capitalization or additional capitalization allowed for Amelia mine in this order
- Disallowed separate O&M expenses for the dedicated transmission line, holding it already covered under normative O&M expenses fixed under the Regulations, 2024
- Allowed water charges only to the extent of normative water consumption per MoEF&CC norms (actual 2.03 Cum/MWh vs 3.5 Cum/MWh norm, well within limits)
- Directed sharing of Rs.8.60 Cr financial gain on controllable operating parameters (Station Heat Rate, Auxiliary Consumption, Secondary Fuel Oil) between JPVL and beneficiaries in 50:50 ratio under Regulation 58.2
- Individually scrutinized BTG/BOP items (e.g., DGA, LVS upgrade, PLC/HMI, stacker-reclaimer, wagon tippler electrification, Jay Jyoti School upgrade) against Regulations 24/25 including the Rs.20 lakh threshold, with petitioner invoking Regulation 68 (Power to Relax) for sub-threshold items
- Petitioner to give 7-day public notice under MPERC 2004 Regulations before implementing the order
- Recalculate bills for energy supplied to DISCOMs/MPPMCL for the period 01.04.2024 to 31.03.2025 based on trued-up charges
- Recover any gap/deficit amount from MPPMCL/three DISCOMs in six equal monthly installments during FY2025-26 onwards
- Share Rs.8.60 Cr controllable-parameter gain with beneficiaries in 50:50 ratio
- Submit compliance report to the Commission confirming implementation of the order
- Resolution of Amelia coal mine capitalization to await outcome of pending APTEL/Supreme Court appeals (Appeal No.95/2016 & batch; Civil Appeal Diary No.64552/2025)
- • C&I open-access consumers procuring power linked to MPPMCL's portfolio should expect a marginal upward tariff adjustment via the 6-installment recovery mechanism in FY2025-26, though quantum is capped by disallowance of the large Amelia mine claim
- • Demonstrates MPERC's strict scrutiny of additional capex post cut-off date—generators/developers should expect similar rigorous line-item review (e.g., Rs.20 lakh threshold, obsolescence justification) for any capacity addition or asset upgrade claims
- • Reinforces that coal mine-linked costs (acquisition/premium) remain contested and excluded from generation tariff until appellate finality—relevant precedent for other generators with captive/dedicated mine arrangements
- • Performance-based gain-sharing (50:50) on heat rate/auxiliary consumption reaffirms predictable, rules-based true-up treatment, useful for PPA-based C&I/DISCOM power cost forecasting
This order signals MPERC's continued conservative stance on additional capitalization—rejecting the Amelia coal mine claim outright given pending litigation, and applying granular, evidence-based scrutiny (obsolescence proof, cost thresholds) to plant-level BTG/BOP claims. For C&I buyers and developers, the key takeaway is procedural: true-ups can materially alter capacity charges after MYT determination, and recovery is staggered (6 monthly installments), softening bill-shock. Developers pursuing coal-mine-linked capitalization should note MPERC will not pre-empt appellate rulings, creating multi-year uncertainty on such cost pass-throughs.
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.