Average power purchase cost increased by 71 paise per unit during FY22-23 due to a rise in various overheads like transmission and distribution rates, Parliament was informed on Thursday.
On the rise in power cost due to increased use of imported coal, Union Power Minister RK Singh, in a written reply to the Lok Sabha, said, “Average power purchase cost increased by 71 paise only between FY22 and FY23. This is because of increase in various costs including an increase in transmission and distribution costs”.
The minister explained that with the rise in electricity demand from July 2021 onwards, the consumption of coal in thermal power plants increased.