CERC proposes sops for higher PLF in peak hours by 10p
SECTIONSCERC proposes sops for higher PLF in peak hours by 10pBy Shilpa Samant, ET BureauRate StoryFollow usShareFont SizeAbcSmallAbcMediumAbcLargeSavePrintCommentSynopsis
For thermal plants older than 25 years, the special allowance is proposed to be raised to ₹10.75 lakh per MW per year against ₹9.5 lakh per MW a year.However, the Central Electricity Regulatory Commission (CERC) has proposed to slash the return on equity for new transmission projects commissioned after April 2024 by 50 basis points to 15%. This could be," marginally negative" for Power Grid Corporation of India, according to industry experts.
AgenciesThe power regulator has proposed to increase the incentive for higher plant load factor (PLF) in peak demand hours by 10 paise per unit to 75 paise for the five-year tariff period of FY25-FY29, in what could be a positive for NTPC, while keeping the return on equity for thermal units unchanged at 15.5%.
The regulations apply to regulated entities for cost-plus based tariff determination. "The proposals are largely on expected lines. There was no expectation of a reduction in the return on equity on thermal units," said a power sector market analyst who did not wish to be named.
For thermal plants older than 25 years, the special allowance is proposed to be raised to ₹10.75 lakh per MW per year against ₹9.5 lakh per MW a year.However, the Central Electricity Regulatory Commission (CERC) has proposed to slash the return on equity for new transmission projects commissioned after April 2024 by 50 basis points to 15%. This could be," marginally negative" for Power Grid Corporation of India, according to industry experts.
"This is only at the draft stage. The stakeholders' views will be taken, and only then can we say something on it," a Power Grid official, who did not wish to be named, said.
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