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It’s Time to End the ‘Bid Low, Raise Price Later’ Strategy of Power Sector Players

Author(s): Ashwini Chitnis, Shantanu Dixit Publication Date: May, 2016

The Appellate Tribunal for Electricity (ATE) recently issued a judgment regarding Tata Mundra, Adani Mundra, Sasan and a few other power projects that were seeking an increase in the tariffs they had quoted to win their respective contracts. As one of the authorised consumer representatives before the CERC, Prayas was a party to these proceedings. It was also one of the appellants challenging the said CERC orders before the Appellate Tribunal for Electricity.

Upholding sanctity of contracts, the Tribunal has overruled discretionary use of regulatory powers to bailout projects, even when no relief is possible under the contracts. It has also significantly limited tariff impact on consumers. An opinion piece was published in The Wire on 27th April 2016 on this issue. Prayas’ earlier submissions regarding this matter can be seen here.

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