Opening the Pandora’s box on tariff-based competitive bids4 min read 03 Apr 2013, 12:40 PM IST
The CERC offer for Adani Power may prompt other competitively bid projects to line up for compensatory tariffs
The Central Electricity Regulatory Commission (CERC) order on compensatory tariffs will have significant implications for competitively bid power projects based on imported sources. Tariff-based competitive bids had been structured such that both capacity and energy (mostly fuel) charges could be determined by the bidders, with an option to keep a portion of these open to escalation for which the formulae were provided by CERC using a diverse basket of domestic and international indices.
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