JSW Energy Seeks MERC Intervention In Tariff Dispute Over Ratnagiri Power Supply

JSW Energy Ltd. on Friday said it will file a petition before the Maharashtra Electricity Regulatory Commission for the adjudication of a dispute regarding the tariff agreed upon for the power supplied from its Ratnagiri unit.

The dispute pertains to the power purchase agreement entered into by the company with Maharashtra State Electricity Distribution Co. Ltd. for the supply of 300 megawatts of power from its "Unit - 1" in Ratnagiri, according to an exchange filing.

JSW Energy said it raised invoices for the power supply as per the tariff agreed under the pact. However, MSEDCL is paying the invoices as per the tariff determined under a direction issued by the Centre in May 2022, using the Section 11 of the Electricity Act 2003, it claimed.

However, MERC in an order issued in July this year stated that the Centre's direction under Section 11 would not be applicable on JSW Energy's Unit-1, the filing stated. This has prompted the company to move an appeal before the commission, it added.

In a separate exchange filing on Friday, the company also announced that its wholly-owned subsidiary, JSW Neo Energy Ltd., has received a letter of award from NTPC Ltd. for setting up a 400 MW solar power project.

JSW Energy aims to achieve 10 GW operational capacity by fiscal 2025 and currently has 7.7 GW of operational capacity spread across thermal, hydro and renewable energy, the filing said.

Shares of JSW Energy closed 1.54% higher at Rs 674.35 apiece on the NSE, compared to 0.19% decline at the benchmark NSE Nifty 50. It has risen by 53.77% in the last 12 months and by 65.03% on a year-to-date basis.

Six out of the 12 analysts tracking the company have a 'buy' rating on the stock, four recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 6.3%.