Tata Power seeks compensation from CLP India

NEW DELHI: Tata Power Delhi Distribution Ltd has sought compensation from the Indian arm of Chinese power producer CLP Holdings for wrongly announcing the commissioning of its 1,320 mw Jhajjar Power project for which it had to unnecessarily pay Rs 33 crore as transmission charge. The matter is pending before the Central Electricity Regulatory Commission (CERC) while Haryana government has also filed a similar complaint against CLP India before Haryana Electricity Regulatory Commission.

This case has also pitted Tata Power Delhi against Tata Power Trading Co. In its petition, Tata Power Delhi told the electricity regulator that it was to procure electricity from CLP India’s Jhajjar Power Ltd through Tata Power Trading, which allegedly failed to initiate any remedial steps against the project developer to safeguard its interests.

“The regulatory dispute is on account of technical reasons and CLP India continues to provide 100 mw to Delhi. Tata Power Delhi, being the utility, had to approach the regulator to avoid burdening its consumers,” said a top executive with one of the parties in the case.

Earlier, Tata Power Trading had entered into a power purchase agreement with Jhajjar Power for supplying 10% power produced at its 1,320 mw plant to Tata Power Delhi. Jhajjar Power did not have a fuel supply agreement but it managed to procure coal for conducting the commissioning test, undertook the test and declared commercial operation in 2012. Tata Power Delhi has been incurring transmission charges since then.