Fair Regulation.

V.Balakrishnan ​​​​​19, First Main Road,

​​​​​​​Karpgam Gardens, Adyar,

​​​​​​​Chennai – 600 020

​​​​​​​+91 9840121596

Dear Editor,

 

Sub: Fair Regulation

 

The leader in your paper today rightly stresses the need for ‘fair’ regulators. It is verytimely. I am in total agreement with the stated opinion that the current decision of the regulator is a “Balanced Decision”. If they had taken a narrow view they would haveto hold Tata Power responsible for the ‘rash’ bidding adopted by them. Such an approach would have been counterproductive as in the total grid with operating capacities in excess of 178000 MW, we are currently adjudicating on the tariff of just8000 MW (including Adani Power) less than 2%. While taking the deciiosn therefore they might have weighed and considered that giving an incentive of 52 paise for these plants, on a pooled basis will have very little impact on the pricing to the consumer.

 

At the same time, the assets under consideration namely Tata power and Adani Power are current state of the art plant with life span of 30 years plus from today and need to be encouraged.

 

Notwithstanding the above, considering the view of price increase being there theregulator has correctly, taken effort to offset its impact through tweaking some of the provisions by shifting from ‘availability’ to ‘Load factor’ and removed unnecessary comfort to the major utility operators. In sum the move has saved some plants, which were on the verge of shutdown and has paved the way for reducing the pooled cost.

 

With regards,

 

V.BALAKRISHNAN