CERS protests shifting burden of Coal India's ‘inferior’ coal supplies on consumers

Protesting against electricity generation companies transferring the financial burden of receiving “inferior” coal on

consumers by charging them illegally, consumer body Consumer Education Research Society (CERS) on Friday said it has lodged a complaint in this regard with the Gujarat Electricity Regulatory Commission (GERC).

The consumer body has requested GERC to direct generation companies to claim losses from Coal India Ltd and other suppliers, CERS said in a statement here.

The power generating companies in Gujarat have been receiving inferior quality coal from Coal India Ltd, which has led to a 25 per cent increase in the requirement of coal from 0.6 kg per kilo watt hour (kg/kWh) to 0.75 kg/kW. The losses thus incurred due to increased consumption are being offset by charging the electricity consumers.

Earlier these power generating companies collected a huge amount from consumers for 6-8 per cent loss of coal in railway transit (from the coal mines to power plants), which has now been restricted to only 0.8 per cent after the implementation of the Electricity Act.

CERS has requested the Commission to direct generation companies to claim losses from Coal India Ltd and other coal suppliers, rather than unjustifiably and illegally charging consumers. CERS has stated that power companies resort to this since they find it easier to burden consumers than to recover the amount from coal suppliers.

Normally, D-grade coal having a calorific value of 4,200-4,940 Kcal/kWh, priced at Rs 1,140 per tonne and another, E-grade coal with a calorific value of 3,360-4,200 Kcal/kWh, priced at Rs 880 per tonne, are used in power plants.

“It is shocking that Gujarat generation companies signed a contract to purchase ‘D’ grade of coal and receive E grade coal. This increases the consumption of coal and the cost per unit generation, thus burdening consumers. The cost of coal increases by Rs 2,000-2,500 per tonne due to railway freight charges, as coal is received in Gujarat from a distance of more than 1,000-1,200 km.”

Two generating companies in Gujarat, in a recent tariff petition they filed, claimed recovery of a huge amount due to receipt of poor and inferior quality of coal. The State-owned power generation company, Gujarat State Electricity Corporation Ltd (GSECL), has claimed recovery of Rs 160.69 crore from consumers due to its inefficiency and receiving inferior quality coal compared to the contracted grade. Similarly, Torrent Power Ltd has claimed a loss of Rs 62 crore from its consumers for getting inferior quality of coal, CERS said.

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