A large number of discoms are looking for the power supplied by NTPC under the SCED system, which facilitates supply of cheaper electricity on priority, according to industry sources.
Under SCED (Security Constrained Economic Dispatch), implemented over a year ago, power generating companies raise capacity utilisation of more efficient plants or of those units which are located closer to coal mines and thus have lower freight cost.
As a result, the cost of power production goes down, which benefits both the distribution companies (discoms) and end consumers.
