The selling price of power generated by gas-based plants will go up by up to Rs 1.20 per unit on account of the hike in the price of natural gas,government said today. However,how much of it would translate into consumer tariff would depend on state regulatory authorities.
The cost of generation would go up by 90 paise to Rs 1.20 per unit (Kwh)for gas-based power plants in the country,power minister Sushilkumar Shinde told reporters today at a FICCI event. The increase in administered gas price will certainly increase the electricity rates because the cascading effect is bound to come on such things, Shinde said on the sidelines of a FICCI event here. Consumer prices are also sure to go up,but the exact quantum would be worked out,he added
The gas-based power plants account for only about 10 per cent of the total generation capacity. This is true that all our units are not run on gas. All those running on gas would be affected by the increase,” he said.
The total installed capacity of gas-based thermal power is just over 17,000 mega watts (MW),shy of 10 per cent of the entire countrys installed capacity of nearly 160,000 MW,according to the Central Electricity Authority. Assam,Delhi,Gujarat,Jammu & Kashmir,Maharasthra,Pondicherry,Rajasthan,Tamil Nadu,Tripura and West Bengal are armed with gas-based power and would be subject to the hike. Delhi,Gujarat,Maharasthra and Tamil Nadu are the biggest consumers of gas-based power. Producers are paid on the basis of fixed and variable cost and the increase in the price of natural gas would accordingly have to be taken into account.