Power woes: Tight tariff structure leaves little room for efficiency gains

NTPC has given in-principle clearance to replace around 11,000 MW old thermal power plants

The thermal power segment feels the current rate structure for coal-based units does not encourage the adopting of better efficiency.
 
They contend the categorisation into fixed and energy cost needs to be reviewed when the Central Electricity Regulatory Commission (CERC) comes out with the next set of rate guidelines.
 
And, CERC says it is looking at making energy efficiency a part of the rate regulations, given the increasing impetus on this. A senior CERC official told this newspaper that efficiency gains would find due mention in the next revision of the rate regulations, due 2019.
 
Power sector