Higher electricity bills loom over five Indian states

Gujarat is allowing Adani, Tata, and Essar to pass higher costs of coal to consumers.

The government of Gujarat is allowing the Adani, Tata, and Essar groups to pass to their customers the higher coal costs in their owned plants, local media report. This could lift bills higher in five states, and the burden in Gujarat alone could reach $1.28b.

According to The Financial Express, the move was backed by a Supreme Court order and a recommendation by a panel. The apex court allowed discoms and power companies to push for amendments in the power purchasing agreement (PPA) of Mundar projects.

Tata Power was quoted saying, “The company welcomes the resolution by the Government of Gujarat to accept the recommendations of the High Power Committee in giving some relief to Mundra Ultra Mega Power Project that meets nearly 15% of Gujarat’s requirement of power at a very reasonable cost. This relief will help Coastal Gujarat Power Ltd to continue its operations to meet its obligations to all the five beneficiary States.”

Consumers can object the decision as per the law, however.