CERC proposes payment based on supply to gencos

Coal quality slippage to be paid by coal supplier or railways

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