reduce power tariffs: Parl panel
UNI, March 13,
fact for higher tariffs due to dip in Plant Load Factor (PLF) of
thermal power plants below 60 per cent last year, the
Parliamentary Panel on Energy is in favour of promoting
competition in the sector which would lead to availability of
cheaper power and the companies which follow it, would survive
while rest will perish.
The panel-headed by BJP MP Virendra Kumar were apprised that
though the tariff is higher for long term PPA, electricity is
available in power exchanges at much lower prices. The situation
encourages Discoms not to go for a long term PPA, but fulfil
their demand by short power purchase as much as possible.
Besides, the committee also noted that several power plants are
running 0-40 per cent of PLF.
The Power Ministry stated that due to huge upcoming renewal
energy capacity, it is possible that the PLF of thermal power
plants could go as low as 50 per cent or even below.
The panel was of the view that in a free business model, only
those power plants will survive which will be able to sell
electricity at cheaper rate.
The panel also desired that the ministry should ensure that this
transition should take place without harming and discouraging
further investment in the sector.
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