The Himachal Pradesh Electricity Regulatory Commission (HPERC) has set the tariff for sale of power from BASPA II, which is a 300 MW hydropower project located in district Kinnaur.
The power will be sold to Himachal Pradesh State Electricity Board Limited (HPSEBL) from 2019-20 to 2023-24.
The state commission has issued the order after being requested by JSW Hydro Energy Limited, the owner of the BASPA II hydropower project. JSW Hydro had filed a petition for the determination of tariff for the control period 2019-20 to 2023-24 as prescribed under the multi-year tariff filing procedures set out under the power purchase agreement.
JSW Hydro Energy Limited had also requested that the commission allow an additional capital expenditure of Rs 110.5 million during 2018-19 to 2023-24. The company claimed the additional capital expenditure under the heads of an upgrade in technology, prudent utility practices, and ‘Change in Law’.
While determining the tariff, the state commission considered the rate of interest on the working capital on the lines of State Bank of India’s prime lending rate of 13.80 per cent as on April 1, 2019 for the entire control period, along with the return on equity at an annual rate of 16 per cent of the equity component of the capital cost.