As part of its preconditions for accepting power deliveries from NTPC's 3x650 MW Stage-II of the Rajiv Gandhi combined cycle power project (CCPP), the Andhra Pradesh government has demanded that while power tariffs may be linked to prices for gas, the same be capped for a crude price of USD 60 per barrel. - The state government has requested that the union power ministry allow that the power purchase agreement (PPA) for the CCPP have the provision for NTPC to bundle the more expensive RLNG-based power with cheaper unallocated power from its other power stations, in case the crude oil price exceeds the said price level.
- Such a dispensation, according to the state, is required to ensure that the final cost of power from the plant does not cause a financial hardship to its discoms or citizens.
- Importantly, international crude oil prices were ranging in between USD 71.36 and USD 90.56 in the week-ended November 12, 2010.
Thanks Harmeet, Nice article indeed. I would like to know what are the implications of hoarding surplus power , to the state. Are there any regulations regarding this hoarding.
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