CERC proposes sops for higher PLF in peak hours by 10p

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.