Government promoting competition in tariff through Power Exchanges.
The present installed generation capacity in the country is around 384 Giga Watt (GW) which is more than sufficient to meet the power demand in the country. The maximum peak power demand experienced so far was around 200.6 GW on 07.07.2021.
The Government has received a proposal from one of the States for a uniform power tariff throughout the country.
Tariff for consumers within each States are determined by the respective State Electricity Regulatory Commission depending upon the various factors like power purchase cost, Aggregate Transmission and Commercial (AT&C) loss, Operation and Maintenance (O&M) expense, consumer mix etc., which varies from State to State. Tariff Policy already provides for uniformity in approach for determination of tariff.
Central Electricity Regulatory Commission (CERC) fixes different tariff rates for different generating companies depending on their capital cost, base fuel price, Gross Calorific Value (GCV), efficiency norms, station heat rate, secondary oil consumption, Plant Load Factor (PLF), varying financial and operational costs, technology of the plant, vintage of the plant etc., such tariff is uniform for all those distribution companies who have a share / Power Purchase Agreement with the said generating company.
The Government is promoting competition through power exchanges. Most of the time there is one rate for the power traded in the power exchanges for all the buyers in the country. Efforts are being made to increase the share of power purchase through power exchanges.
This information was given by Shri R.K. Singh , Union Minister for Power and New and Renewable Energy in a written reply in Lok Sabha today.
