JSW Energy slides over rejection of MERC plea

Mumbai : JSW Energy has shed nearly 4% at Rs 43.85 as the company got yet another jolt on Thursday, as Maharashtra Electricity Regulatory Commission (MERC) rejected its petition to pass on increased fuel costs to the state utility. The regulatory authorities have rejected JSW Energy's plea to revise power tariffs because of difficulty in procuring fuel from Indonesia.

JSW had approached the MERC after its dispute with the state distribution utility over revision of tariff for its 300 mw unit at Jaigad, Ratnagiri. Ever since the company has been buying coal from the international spot market, the prices have been soaring. It is this extra cost, thatJSW sought to be “adjusted" into the power price.

This decision, according to analysts, is a set back for other companies seeking higher electricity rates on similar grounds.