Economy

Ministry okays norms for optimum utilisation of power plants

New Delhi | Updated on October 08, 2021

This is as per the Tariff Policy 2016

RK Singh, Power and Renewable Energy Minister, approved guidelines – as per the Tariff Policy 2016 – that will help ensure optimum utilisation of power plants and consistent despatch of power.

According to the approved guidelines, where the procurer does not requisition power from the power plant with which he has signed the Power Purchase Agreement, up to 24 hours in advance prior to 00.00 hrs of the day of delivery of power, the generator shall be free to sell the unrequisitioned power in the power exchange.

“Where the procurer decides not to schedule power for any period, either full or part capacity, from the generating station with which he has signed the PPA, which may be more than 24 hours in advance, the generator shall be free to sell the unrequisitioned power, for the period for which it has not been requisitioned in the power exchange,” said a release.

Further, the developer and the procurers having the PPA will share the gains realised from sale, if any, of such un-requisitioned power in the above two guidelines in power exchange in the ratio of 50:50, if not otherwise provided in the PPA. Such gain will be calculated as the difference between selling price of such power and the Energy Charge Rate (ECR) as determined under section 62 or section 63 of the Electricity Act 2003, the release added.

“The obligation for the procurer with regard to the fixed charges shall remain same in accordance with the PPA. The above provisions shall apply both for the power plants whose tariff has been determined under Section-62 or Section-63 of the Electricity Act 2003,” the release added. The power plants shall continue to have obligations and duties to make their plants available as per the terms of the PPA, it added.

Published on October 08, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

You May Also Like