KSEBOA - KSEB Officers' Association

Apr 20th
Text size
  • Increase font size
  • Default font size
  • Decrease font size
Home News Power Sector News Hike in power tariff unavoidable: CERC

Hike in power tariff unavoidable: CERC

Hits smaller text tool iconmedium text tool iconlarger text tool icon
CERCHike in power tariff looks inevitable given the shortage of coal in the domestic market and dependence of power companies on imported coal, chief of Central Electricity Regulatory Commission (CERC) said . "Since there is shortage of coal in the domestic market, companies will have to depend on imported coal, which is very costly. If fuel cost goes up, the tariff hike is inevitable," CERC Chairman Pramod Deo told reporters on the sidelines of Power India Summit here today.

He said that higher cost of fuel reflects in fuel adjustment charge (FAC), which has to be passed on to the consumers in the form of increased tariff.

"Under the Electricity Act 2003, FAC has to be built in in a formula while determining tariffs. Some state electricity regulatory commissions have already done this and increased tariffs. But it has to be done regularly," he said.

"We understand that consumers will be burdened with the increase in tariff. But if there is shortage of fuel and it has to be procured at higher cost, then it will have to be passed on," Deo added.

He also said that there was a need for state power distribution companies to look at entering into medium term power purchase contracts instead of long term.

"States have entered into long term contracts for almost 25-30 years with various companies under the ultra mega power projects. But with the uncertainty in the coal availability and increase in prices, the state governments should look at medium term contracts of around 8-10 years," Deo said.

Source- Economic Times


Add comment

Security code

Random Videos

You need Flash player 6+ and JavaScript enabled to view this video.
Title: Power Quiz 2015 Final - Part-1

Latest Comments


Reference Book


Reference Book on Power

Electrical Engineering-- D' 1/4 Size Hard bound-- 1424 Pages-- Just Rs.1000/- only &n...

Visitors Counter

mod_vvisit_counterThis Month86017
mod_vvisit_counterLast Month123110

Online Visitors: 97
Time: 18 : 13 : 26