MPERC allows true-up of FY2024-25 generation tariff and FGD supplementary tariff for 2x600MW Anuppur TPP, with mixed relief on additional capex claims
Petition under Section 62 and Section 86(1)(a) of the Electricity Act, 2003 for determination of the True-Up under MPERC Tariff Regulations,2024 for (a) Tariff for coal based Anuppur Thermal Power Project comprising of Unit-1 & Unit-2 at District Anuppur, Madhya Pradesh for the period from 01st April 2024 to31st March 2025; and (b) Supplementary Tariff in respect of implementation of FGD System in the coal based Anuppur Thermal Power Project for the period from 01st June 2024 to 31st March 2025 (Petitioner: 1) MB Power (Madhya Pradesh) Ltd)
MB Power sought true-up under Section 62/86(1)(a) and MPERC Tariff Regulations 2024 of (a) generation tariff for FY2024-25 for its 1200MW coal Anuppur project (MYT order dt 28.02.2025) and (b) supplementary FGD tariff from 01.06.2024-31.03.2025 (MYT order dt 27.11.2025), based on audited additional capital expenditure of Rs 4.11 Cr (project) and Rs 68.06 Cr (FGD), including EPC early-completion incentives, refinancing interest savings, and grossing-up of RoE for tax.
- Additional capitalization of Rs 4.11 Cr (Land & Site Development/R&R payments) for the project allowed under Regulation 24.1(iv)
- Of Rs 68.06 Cr FGD additional capex claim, Rs 22.53 Cr EPC early-commissioning incentive DISALLOWED (consistent with earlier orders in P-32/2024 and P-23/2025); remaining discharge-of-liability components allowed
- Water charges and Fly Ash Transportation expenses allowed only to extent of MPPMCL's pro-rata share, not full amount
- Interest savings of Rs 4.73 Cr from loan refinancing (SBI/Axis to IIFCL) shared 50:50 between petitioner and MPPMCL under Regulation 59
- Grossing-up of RoE with normal/effective tax rate allowed per APTEL judgments dated 22.03.2024 and 28.07.2025 (JPVL case), despite pending SC challenge/interim order
- Late Payment Surcharge on outstanding true-up amounts to be applied as per PPA terms (Article 10.4.2)
- Petitioner to give 7 days public notice before implementing the order
- Petitioner to recalculate bills for energy supplied to Discoms/MPPMCL from 01.04.2024 to 31.03.2025
- Petitioner to submit compliance information to the Commission confirming implementation
- Gap/deficit amount for project and FGD to be recovered from MPPMCL/three Discoms in 6 equal monthly installments during FY 2026-27
- Grossed-up RoE amounts remain subject to outcome of pending Supreme Court appeals (Civil Appeal Nos. 6562/2024 and 3253/2026) on APTEL's JPVL judgments
- • C&I consumers procuring power via MPPMCL/Discoms from Anuppur project will see tariff true-up impact (net gap/deficit) recovered over FY2026-27 in 6 monthly installments, affecting power purchase cost pass-through
- • Precedent on RoE grossing-up (tax pass-through) and 50:50 sharing of refinancing gains signals continuing cost-plus tariff volatility for thermal PPAs relevant to open-access/behind-PPA power costs
- • Disallowance of EPC early-commissioning incentives as a capitalizable cost reinforces prudence-check discipline on generator capex claims, relevant for developers structuring EPC contracts under regulated tariff regimes
- • Ongoing SC litigation on RoE grossing-up (JPVL matter) creates residual uncertainty for future true-ups of similar regulated thermal PPAs in MP, which C&I buyers reliant on Discom power should monitor
This is a routine but instructive true-up order showing MPERC's calibrated approach: it allows genuine liability-discharge capex but firmly rejects EPC early-completion incentives as pass-through cost, and enforces pro-rata allocation of fuel/water/ash charges strictly to contracted capacity. The RoE grossing-up relief, riding on APTEL's JPVL precedent despite an SC interim order, is significant and could be revisited pending apex court outcome - C&I buyers with exposure to MP Discom power costs should track this appeal as it could reopen future true-ups. Net financial impact on Discom power cost is modest and smoothed over FY2026-27 installments, so immediate C&I tariff impact is limited.
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.