The power regulator has proposed to increase the incentive for higher plant load factor (PLF) in peak demand hours by 10 paise per unit to 75 paise for the five-year tariff period of FY25-FY29, in what could be a positive for NTPC, while keeping the return on equity for thermal units unchanged at 15.5%.
The regulations apply to regulated entities for cost-plus based tariff determination. “The proposals are largely on expected lines. There was no expectation of a reduction in the return on equity on thermal units,” said a power sector market analyst who did not wish to be named.
