The Ministry of Power vide its notification dated 21st February 2022, has amended the guidelines for short-term (i.e. for a period of more than one day to one year) Procurement of Power by Distribution Licensees through Tariff based bidding process.
The Ministry has notified the following amendments in the said guidelines in order to address the issue of sale of power by Generators in the market without the consent of procurer, to be effective from notification of this amendment.
As per the amendment under para 6.4 which deals with standard documentation to be provided by the procurer in the Request for Proposal (RfP) in which a new sub-clause (vi)(f) has been notified as follows:
Power Purchase Agreement (PPA) proposed to be entered with the Selected Bidder(s) shall include necessary details on:
g. Consequences on Sale of Contracted Power to Third Party without consent of the Procurer:
In case the Seller fails to offer the contracted power as per the Agreement to the Procurer and sells this power without Procurer’s consent to any other party, the Procurer shall be entitled to claim damages from the Seller for an amount equal to the higher of :
(a) twice the Tariff as per the PPA for the corresponding contracted power; and
(b) the entire sale revenue accrued from Third Parties on account of sale of this contracted power.
On a complaint to this effect by the Procurer to the concerned load dispatch centre, the Seller shall be debarred from participating in power exchanges and also from scheduling of this power in any short term/ medium term / long term contracts from that generating station for a period of three months from the establishment of default, in the complaint. The period of debarment shall increase to six months for second default and shall be one year for each successive default.
