DERC issues order for Revised PPA of TPDDL and NPCIL for Narora Power Supply

The Delhi Electricity Regulatory Commission issued an order regarding a petition filed by Tata Power Delhi Distribution Ltd. (TPDDL) seeking approval of a draft Power Purchase Agreement (PPA) with Nuclear Power Corporation of India Ltd. (NPCIL) for power procurement from Narora Atomic Power Station (NAPS) Units 1 & 2.

The petition was filed under Section 86 of the Electricity Act, 2003, along with other relevant provisions. TPDDL, a distribution licensee operating in North and North West Delhi, had an existing PPA signed in 2005 through Delhi Transco Limited (DTL) for power supply from NAPS and Rajasthan Atomic Power Station (RAPS).

The PPA had a validity of 15 years, expiring in April 2020. As the expiry date approached, TPDDL sought an extension and requested clarity on the remaining operational life of the plants and future tariffs.

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The Commission observed that following several hearings and talks, the parties had agreed on a revised draft PPA with mutually acceptable changes that complied with government laws, especially the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022. Updates on payment security measures, billing error correction, and late payment surcharge terms were among the major changes.

The Commission recognized that, aside from the necessary adjustments to conform to regulatory requirements, the updated draft PPA essentially preserved the original agreement's structure.

The Commission accepted the updated PPA after taking into account the parties' agreement. TPDDL was directed to send the completed and signed contract to the Commission for documentation.

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