It said that in the absence of the draft power purchase agreement (PPA) between the parties, for any non-supply or curtailment of power during the agreed-upon peak hours, the penalty payable to the Haryana Power Purchase Center should be 100% of the tariff agreed upon by the parties.

The Commission added that the liquidated damages clause for non-supply, curtailed supply during peak hours, or non-commissioning of the project within the stipulated 18 months, will also be enforceable under the power sale agreement (PSA).

HPPC had filed a petition seeking approval for the procurement of 150 MW of renewable power from SECI for 25 years at a levelized tariff of Rs 3.96/kWh with an off-peak tariff of Rs 2.88/kWh and a peak tariff of Rs 6.85/kWh, plus a trading margin of Rs 0.07/kWh.

HPPC pointed out that the tariff offered by SECI was lower than the variable cost of the power sourced from thermal stations and lower than the short-term power procured from other sources.