Maharashtra state electricity board (MSEB) has contended that it was forced to rescind the power purchase agreement (PPA) with Enron's troubled Dabhol power company (DPC) due to the US energy major's ultimatum over offtake of power from it's USD three billion project. "The board was forced to rescind the PPA and declare the contract as null and void as it was given an ultimatum by DPC saying that MSEB cannot have its cake and eat it too." MSEB has said in its Supreme Court affidavit in response to DPC's special leave petition, which will come up for hearing, on Monday.
Alleging "misrepresentation" of PPA by the energy major, MSEB has said the multinational had flouted the operating characteristics and dynamic parameters of the 2,184 mw power project in Dabhol. The loss-making board has submitted before the apex court that it was bound by State Electricity Regulatory Commission's (MERC) October 2000 order notifying a merit order despatch directing MSEB to draw costliest power (DPC's in this case) as a last resort.
"The multinational had been aware of this development but not raised any objection at that time. So we followed the order and reduced our offtake to an average of 50 to 55 million units plant load factor as compared to 400 million units in April 2000", MSEB said. Bureau Report