These agencies have demanded that MERC, under the provisions of Electricity Regulatory Commission's Act should procure and start analysing the documents related to the power purchase.

Janata Dal (S) and Prayas have said that MERC should also analyse MSEB's power purchase agreement (PPA) with the Ispat Group for the 1,082 mw Bhadravati project and that with Reliance for the 447 mw Patalganga project. In addition to this, MERC should also look into liquid fuel projects, cogeneration projects and renewable energy projects in the state.

MERC sources told The Financial Express that they have received separate communications from these agencies. "We will listen to their pleas after they submit exhaustive petitions in this regard during the hearings," the sources added.

These agencies' demands have come close on the heels of the Maharashtra energy minister's submission that the high cost of power purchased from the Dabhol Power Company (DPC) and the state's foreign exchange liability have further worsened the financial state of the loss-making MSEB.These agencies have demanded that MERC should direct MSEB to submit power purchase agreements, support agreements, guarantee and counter guarantee agreements, escrow agreements, and other statutory clearances for "undertaking a detailed analysis of various aspects related to power purchase expenditure." They have said that these documents should also be made available to them and to consumers in general.

Prayas, which had made a petition during tariff fixation by MERC, has said that the power purchase costs form a significant part of MSEB's total revenue requirement. During the current fiscal, power purchased from independent power producers (IPP) forms 15 per cent of MSEB's revenue requirement.