Adani’s power bill over$9.09 m in 2-month

–Adani is expected to charge 0.01 cent less than Payra-Rampal’s maximum bill
-Adani’s power bill was higher than Rampal’s two months after production started
-Adani will be billed 1 paise less than Rampal for those two months
-Additional $9.09 million will be coordinated with Adani’s next bill by PDB

Mahfuz Emran: Controversy arose over Adani’s electricity prices even before production began. In view of this, the delegation of Adani held a meeting with the Power Development Board (PDB). Finally, the Indian company agreed to reduce the price of electricity. Adani said to charge 0.01 cent less than the maximum bill between Payra and Rampal. However, in the first five months after the start of electricity supply, Adani submitted bills at a higher rate in two months.
The issue has come up in a PDB report. It has been informed that the side letter submitted by Adani Power (Jharkhand) Limited has been signed in view of the decision of the 2007 board meeting of PDB and with the approval of the Power Department. The side letter mentions some issues regarding energy payments. But he submitted the revenue bill without complying with the conditions. In this, the company has submitted more than $9.09 million bill in two months, which will be adjusted with the next month’s bill.
The main point of the side letter was that commercial production of Adani’s first unit started on April 6. Adani’s electricity energy payment (fuel cost + maintenance cost) every month from that day onwards for the next one year will be compared with the electricity energy payment per unit of the large coal-fired power plants (Payra, Rampal, Matarbari and Banshkhali) operating in Bangladesh at that time.
In any month, if the energy payment per unit of electricity of Adani’s power plant is higher than the maximum energy payment per unit of electricity of coal-based power plant in Bangladesh, the adjustment will be applicable to Adani’s energy payment in that month. In this case, Adani’s energy payment per unit shall be calculated by reducing the revised energy payment by 0.01 cents from the maximum energy payment for coal-based power plants in Bangladesh. Based on this, the additional energy payment to Adani will be adjusted from the next month’s invoice.
According to the PDB report, Payra power plant’s production cost per month was the lowest in five months (April-August). However, Rampal’s production costs were lower than Adani’s in two months. In April, the electricity generation cost per unit at Payra power plant was $0.817 cents. In that month, Adani’s power plant’s production cost per unit was $0.851 cents and Rampal’s $0.987 cents. Adani’s bill in April was lower than Rampal’s so there was no problem.
In the next month (May), electricity production in Pyara decreased to $0.759 cents per unit. The average cost of production for Adani’s first unit that month was $0.848 cents and for the second unit $0.854 cents. And the electricity production cost per unit in Rampal was $0.842 cents. In May, the first unit of Adani’s power plant was overcharged by $292,696 and the second unit by $36,193.
In June, Payra power plant’s production cost further decreased to $0.715 cents per unit. In June, Adani’s average cost of production in the first unit was $0.775 cents and in the second unit $0.75 cents. And in Rampal, the average cost of production in June was $0.833 cents. There was no problem as Adani’s bill was lower than Rampal’s that month.
In July, the cost of power generation per unit was $0.594 cents at Payra, $0.678 cents at Adani and $0.774 cents at Rampal. That month also there was no problem as Adani’s bill was lower than Rampal’s. And in August, the electricity production cost in Payara decreased to $0.527 cents per unit. At that time the average cost in Rampal was $0.593 cents and Adani $0.687 cents. In August, Adani submitted a bill of $8765.390 dollars more.
In all, Adani has submitted more bills of about $9.09 million dollars. This amount of bill will be considered as deductible. However, it was decided in the PDB meeting that if the bill of Rampal compared to Adani changes, then the deductible bill of Adani will also change.
When asked, a senior PDB official told on condition of anonymity that the bills submitted by Payra, Adani and Rampal from April to August are being scrutinized. If all bills are correct. Then an additional $9.09 million will be adjusted from Adani’s next month’s bill.