CERC issues order on grade slippage

The Central Electricity Regulatory Commission (CERC) has allowed Sasan Power Limited to recover compensation of Rs 191.8 million, Rs 1,439 million and Rs 1,845.9 million for 2013-14, 2014-15 and 2015-16 (up to August 2015) respectively, under the “change in law” clause for the 3,960 MW Sasan UMPP in Madhya Pradesh. The commission has allowed this on account of cost increases due to the increase in royalty, and levy of a clean energy cess and excise duty on coal. Further, the CERC has stated that the compensation for such changes in law would be applicable for subsequent contract years as well.