India’s largest power producer NTPC Ltd is considering pooling fixed charges for all its coal and gas-based projects in a move that it claims will help maximise output from stations that generate low-cost electricity and reduce consumer tariffs.
“As a state-run company, it is NTPC’s responsibility to see that electricity from all our cheaper stations is dispatched first. NTPC will not benefit even a single paisa from the scheme. On the contrary, the entire benefit will be passed on to state power distribution companies,” a senior company executive said on condition of anonymity.
“Fixed charges of all NTPC coal and gas-based stations shall be pooled, which means all states would pay at the same rate of fixed charges,” he said. NTPC will make a formal presentation before power ministers and top power officials of all states at a two-day conference scheduled to be held in a few weeks. Industry experts said the mechanism could benefit some states to lower costs but might increase expenditure for some.
However, NTPC said the proposal will result in lower power purchase cost of all the states. Post pooling, NTPC proposes to put its lowcost stations on optimum utilisation and use its costlier power plants sparingly in ‘reserve shut down.’ Mel Ott Womens JerseyShare This