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This is an archive article published on October 19, 2009

NTPC plans hike,power tariff may rise

The state-owned National Thermal Power Corporation (NTPC) is considering a rise in rates charged for supplying power to distribution companies (discoms).

The state-owned National Thermal Power Corporation (NTPC) is considering a rise in rates charged for supplying power to distribution companies (discoms). If the rates are hiked,and if the Central Electricity Regulatory Commission (CERC) approves the decision,it would lead to a rise in tariff for consumers.

Officials said NTPC is planning the hike after Coal India Limited last week hiked coal prices by 11 per cent.

Nearly 26,000 mega-watt (MW) of 30,000 MW generated by NTPC is through coal-based plants. “The hike in coal prices will have an impact on the cost of power — naturally,the cost of power will rise,” NTPC chairman and managing director R S Sharma said.

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Sources at Delhi Electricity Regulatory Commission said,“If CERC approves the hike in rate of power sold by NTPC to discoms,rates paid by these companies to purchase power will have to be reimbursed in full. In other words,the hike will have to be passed on to consumers.”

A BSES spokesperson said,“We expect tariffs to be increased by the end of this fiscal,as cost of buying power has increased by 90 per cent since 2002,when distribution was privatised. Tariffs have risen by 26 per cent.”

Meanwhile,PTI reported that NTPC will commission nearly 1,500 MW to ensure uninterrupted power supply during Commonwealth Games. NTPC is working on a 980 MW coal-based thermal power plant in Dadri and two 500 MW thermal plants at Jhajjar,Haryana.

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