MSPGCL filed a consolidated revised petition with MERC in the matter of case no. 195/2025, towards the determination of final tariff of the newly commissioned Unit 6 (1 x 660 MW) of Bhusawal Thermal Power Station. Prayas (Energy Group) submited inputs towards ensuring accountability and prudence, which included the following:
- Reviewing the Interest During Construction considered towards capital cost, and ensuring that the liquidated damages collected or to be collected by the generator from the contractor is adjusted against the IDC before passing it on to the consumer
- Scrutinising the fuel costs and energy charges considered, and ensuring disaggregated details and justification of fuel costs for FY26 and ensuing years, including consideration of reasoned and realisitic annual escalation rate, are provided by the generator before approving the costs
- Mandating that the generator submits a detailed cost benefit analysis before deciding whether to discontinue or continue with FGD installation, and that details of adherence to NOx emissions are published as a pre-condition for passing on costs of the SCR system
- Ensuring that tariff dertermination and cost pass-throughs are carried out only based on the approved operational parameters, especially for controllable operational parameters
- Carrying out a Mid-Term Review tariff process for generating entities under the Commission's jurisdiction
After the public hearing for this matter, PEG made an additional submission in response to MSPGCL's reply. In the additional submission, PEG sought greater clarification on aspects such as treatment of liquidated damages withheld, various components of the energy charge rate such as the raw coal cost, its escalation, and transportation cost, cost-benefit analysis to decide whether to continue building the FGD or not, and not permitting any dilution of controllable operational parameters such as SHR.
PEG also made a second additional submission on the matter, in response to the submission made by MSPGCL post the public hearing. Matters such as the prompt adjustment of Liquidated Damages against the total capital cost of the project, the reporting and consideration of fuel costs for tariff determination and projection, and the completion and utilisation of FGD were further highlighted in the latest submission.