“Power firms can’t pass on fuel cost to con­sumers”

Power Watch India - - DESPATCHES NATIONAL -

The Cen­tre has ruled out pass­ing any por­tion of the fuel cost on to con­sumers by power pro­duc­ers, which have ob­tained coal blocks through re­verse auc­tion. Gireesh B Prad­han, Chair­man of the Cen­tral Elec­tric­ity Reg­u­la­tory Com­mis­sion (CERC) said that in a re­cent di­rec­tive, the gov­ern­ment has made it clear that the coal block own­ers could not change their premise on “zero” fuel cost. As per news re­ports, the CERC Chair­man re­port­edly said, “Ev­ery­body had bid zero, and ex­trac­tion costs are sub­sumed in that. We have re­ceived a di­rec­tion from the Min­istry that in the case of power pur­chase agree­ments (PPAs), the fi­nal tar­iff should be less than what­ever tar­iff was ear­lier de­cided. You can­not shift the energy cost now to fixed costs.”

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