The Central Electricity Regulatory Commission (CERC) has allowed power plants (selling electricity under the ‘cost plus’ system) to receive higher compensation for loss in fuel quality while coal is ferried and stored. Additionally, for computing tariff of power from such plants, the electricity regulator also maintained the base return on equity (RoE) at 15.5%.
The latest regulations will impact the electricity tariff for 76 giga-watt (GW) power plants that sell power under the ‘cost-plus’ system between FY19 and FY-24. Apart from state-run NTPC, the new regulations would also have a bearing on returns of stressed power assets such as Jaiprakash Power Ventures’ Nigrie and Bina plants, Avantha Group’s Jhabua plant, GVK Power’s Goindwal Sahib, KVK Group’s Nilachal unit and Lanco Babandh station, which supply part of their electricity under the ‘cost plus’ regime.
