PSPCL to pay for ‘greener’ pvt power plants

PATIALA: In a major setback to power consumers, two private thermal plants in Punjab have been permitted to claim the installation and operational costs of around Rs 3,000 crore to meet mandated pollution emission norms from the Punjab State Power Corporation Limited (PSPCL). Called Fuel Gas De-Sulphurisation

(FGD), the system is installed to eliminate sulphur particles from emissions, as these harm the environment. The cost of this will ultimately have to be passed on to consumers, say experts.

On August 28, the Appellate Tribunal For Electricity (APTEL) allowed Nabha Power Limited to claim Rs 770 crore as capex (one-time capital expenditure ) and Rs 60 crore per year as opex (operational cost) for the next 20 years. The Talwandi Sabo Power plant demanded Rs 1,380 crore as capex, while Rs 35 crore as opex every year for the next 20 years; this was also granted.

“The impact will be above Rs 3,000 crore. It’s another major lacunae in drafting the Power Purchase Agreement (PPA) by the then officials under the SADBJP regime. This is a big setback,” said a power engineer, saying that fuel charges will have to be increased.

Even though, guidelines for installation of the FGD were changed after signing the PPAs with private thermal power plants, several grey areas.

In 2018, PSPCL had successfully managed to rebut the arguments of these plants on the same issue before the PSERC.

“The additional cost for installation of the FGD in terms of recommendations obtained from the CEA should become part of the capital cost. The capital cost already approved and being paid in the form of tariff does not include the cost towards FGD installation. This additional cost again has to be invested by generators. We are of the opinion that the appellants are entitled to carrying cost also...they have rightly substantiated their claim,” read APTEL orders.