Tariff hikes to help SEB financials: CERC

The Attorney General's comments suggesting that the CERC has the right to revise tariffs set under PPAs signed has sparked off optimism amidst companies like Tata Power. However, Dr. Pramod Deo, Chairperson, CERC remains cautious and says it is still unclear whether the CERC can ask the end buyers of power from Ultra Mega Power Projects to accept a tariff increase. The final decision, he says, depends on the provisions within the PPA itself. The CERC is currently studying the PPAs of Tata Power & Adani and will make a decision on the issue over the next two months.