NTPC Ltd, the country’s largest power producer, has reported a 13 per cent drop in net profit for the quarter ended June 30 due to the implementation of the latest tariff revision announced by the central power regulator.

For the quarter, NTPC’s net profit stood at ₹2,201.20 crore against ₹2,527.02 crore in the corresponding period last year.

The implementation of the Central Electricity Regulatory Commission’s tariff regulation led to the drop in profitability as they had provisions for retrospective tightening of technical parameters. “Almost 53 per cent of energy being sent out has negative contribution on account of the implementation of Tariff Regulations 2014,” the company said.

NTPC had sought modifications to the regulations but the CERC had rejected the company’s plea in an order dated June 30, 2014.

The public sector power generator’s total income for the June quarter grew 15.2 per cent to ₹18,885.14 crore from ₹ 16,391 crore a year ago.

The company’s gross power generation for the quarter stood at 63.133 billion units, 10.75 per cent higher than what it had generated in the year-earlier quarter. The coal-based power plants of NTPC clocked a plant load factor of 84.29 per cent. As on June 30, the company had an installed capacity of 43,128 MW.

NTPC added the tariff regulations have made norms very stringent in areas of station heat rate, specific oil consumption and auxiliary power consumption, which are adversely impacting the operating profit of thermal power plants.

The regulations had also linked incentives to plant load factor instead of plant availability factor. “Since discoms (distribution companies) and state electricity boards are strapped for funds, PLF is often lower than PAF which would imply that NTPC would be entitled to lesser financial incentives,” NTPC said.

On Thursday, NTPC’s shares closed 3.01 per cent lower on the BSE at ₹145.

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