The Centre for the first time has invoked the emergency provision, Section 11 of the Electricity Act, mandating all imported coal-based projects to generate power at full capacity, in order to address the country’s fuel crisis.
According to the provisions of the act, the government can ask power generating companies to keep their stations running in accordance with central directions under extraordinary circumstances. An appropriate commission may offset the adverse financial impact of such directions.
The power from these generating companies would be supplied to consumers having power purchase agreement (PPA) with the gencos and any surplus would be put on the power exchanges for purchase by non-linked consumers. If states don’t buy power from these stations, the PPA quantity could move to other linked consumers or put on the exchange.
