Power prices may rise further for both domestic and
industrial consumers as generation firms have broadly agreed on a model for price
pooling of coal.
The pooling is being introduced to even out the impact of
pricey imported coal on power generation that will be shared equally
by all consumers.
“According to the model that has been readies and has received nod from
power producers, coal imported by Coal India will be about 70 million
tonnes this year. Coastal thermal power plants will be using 30% of imported
coal, while units within 300 km of coast line will use 15%. Rest of the thermal
power generators will use 100% domestic coal that will be supplied by Coal
India,” said a senior executive from a large public sector power company.
Costly imported coal will increase cost of generation for
coastal power producers as they use 30% or 15% of imported coal which is more
than double the cost of coal supplied by CIL.
Power generated by a 70:30 blend of domestic and imported
coal will increase cost of generation by 10-15% for the particular unit
compared to a unit which uses 100% domestic coal. This increased price will be
distributed equally for all consumers irrespective of the coal its suppliers
use.
“Power tariffs for plants located in east are expected
to increase more in comparison to units that are situated on the coastal
regions those on the western coast. Units in eastern region uses major volume
of domestic coal and price pooling will invariably result in increased tariff,”
a senior official from a West Bengal based power producer said.
Source: The Economic Times
Leave a Reply