NTPC contains tariff rise with fall in coal imports, power blending

NTPC has succeeded stemming the hike in power tariff over the past five years despite a five per cent increase in annual consumer price index inflation from 2013-14 to 2018-19.

The government-owned power generator saw its average nominal tariff change only marginally from Rs 3.30 to Rs 3.38 per unit during the period even as Coal India Ltd (CIL)’s post-tax coal prices rose at a 4.1 per cent compounded annual growth rate (CAGR).

NTPC’s fuel expenses dipped from Rs 1.97 per unit in FY14 to Rs 1.92 at the end of FY19. According to a report by US-based think-tank Institute for Energy Economics & Financial Analysis (IEEFA), no material change in NTPC’s average tariff reflects a deflation in real terms.