Business Economy

CERC Allows BSES To Exit Power Purchase Deal With NTPC

The Central Electricity Regulatory Commission (CERC) has allowed BSES to walk out of a power purchase agreement (PPA) with the NTPC Ltd’s Dadri-I thermal power plant, in a first-of-its-kind order that will help Delhi’s largest power discom save at least Rs 35 crore per month. The order can be a potential trigger for more such petitions from discoms demanding that they be allowed to exit PPAs that are no longer beneficial or necessary, yet affecting the bottom line of the companies. BSES hailed the order as “landmark that will help in lowering the power tariff, thus benefiting the 45 lakh consumers of the company in Delhi”. The discom had moved the CERC to restrain the NTPC from invoking any penalty for walking out of the contract in November, 2020. The contract was signed in June 2007, and was later extended through a supplementary agreement…