In a bid to assist loss-making power distribution companies (discoms), the Central Electricity Regulatory Commission (CERC) has proposed that payment which they make to power generators would be according to the energy supply to discoms, rather than just plant availability.
The move comes at a time when the plant load factor (PLF) or operating ratio of thermal plants is declining owing to less demand and increasing share of renewable energy, which operates at 20 per cent PLF.
CERC has proposed a new formula for payment to the generating companies (gencos) in its draft tariff regulations for 2019-24.
The regulator has suggested that the plants would declare availability of 80 per cent for the year. This would entail payment of 80 per cent of the annual fixed cost to them. Any slippage would lead to reduction in a proportionate manner. For the balance 20 per cent, payment would be based on 95 per cent plant availability during peak demand. Read More