CERC asks Centre to compensate imported coal-based power plants; Tata Power welcomes decision

Power plants dependent on imported coal should be fully compensated for meeting electricity demand under forced circumstances, the Central Electricity Regulatory Commission (CERC) has said in an order.

In an order dated January 3, the power regulator said that power tariffs for imported coal-based plants should also include reasonable profit margin apart from covering their costs.

CERC’s order basically was related to Tata Power Co Ltd, which had approached it against the tariff fixed by the power ministry.

Tata Power had approached CERC in May last year, seeking a higher tariff than the one fixed by the power ministry for its imported coal-based Mundra project.

The CERC order also said that the tariff fixed by the power ministry was for an interim period.

In May 2022, government had invoked an emergency clause in the Electricity Act, asking non-operational imported coal-based plants, to resume functioning to meet high electricity demand.

The plantshad been shut due to higher international coal prices.

Reacting to CERC’s order, Tata Power said it “welcomes the decision of the Honorable CERC of allowing the Imported coal based Power Plant full compensation of coal cost and operating parameters for supplying electricity under emergency supply under section 11. The order is also beneficial for the CGPL Mundra Plant as it can now recover the full cost incurred for supplying power in terms of the MoP Section 11 directions. We are thankful to the CERC for granting all prayers in our favour”.

(With inputs from IANS)