Good news for Dabhol Power Purchase Agreement

Vol 4, PW 2 (01 Mar 00) News in Brief
     

Electricity regulators in Maharashtra have blocked an attempt to stop the local electricity board buying power from the Enron-backed Dabhol power project.

In a ruling made publicon 28th February, the Maharashtra Regulatory Electricity Commission ruled against a petition by local activists to stop the Maharashtra State Electricity Board (MSEB) buying power from Dabhol when cheaper supplies are available with the Tata Electric Company (TEC) and the Bombay Suburban Electricity Company (BSES). The petition alleged that MSEB is making losses of Rs100cr ($23m) per month because its PPA with the Dabhol Power Company forces it to buy power from Dabhol when cheaper supplies are available from TEC and BSES.