Central Electricity Regulatory Commission allows generating companies to blend domestic coal up to 20% of alternative sources without permission of beneficiaries
Central Electricity Regulatory Commission allows generating companies to blend domestic coal up to 20% of alternative sources without permission of beneficiaries
Tangedco seeks clarification from Central Electricity Regulatory Commission suo moto Order to allow production companies to blend domestic coal up to 20% of alternative sources including imported coal without taking permission from the beneficiaries (distribution companies).
On July 26, 2022, the commission issued the order amid coal shortage and said it would be effective till October 31 this year or until further orders, whichever is earlier. For blending of imported coal, the production companies were allowed to pay the cost to the distribution companies.
On May 26 this year, the Union Power Ministry had directed distribution companies to compensate generators due to blending of imported coal as per the prescribed procedure. Later on August 11, it withdrew the directions with immediate effect.
TANGEDCO reported that the commission’s order states that the amendment is valid till October 31.
The date from which the order is to be considered – i.e., May 26, 2022 or July 26, 2022 has not been mentioned, it added.
The commission will also have to issue an order to withdraw it. suo moto order, Tangedco said.
The state utility has mentioned this as part of the agenda item for the meeting of the Commercial Sub-Committee of Southern Regional Electricity Committee under the Central Electricity Authority.
The Kerala State Electricity Board Limited has also sought clarity on the percentage of blending by generators with imported coal. Beneficiaries need to know the power purchase cost to inform the State Regulatory Commission.