Model PPA moots pass-through of fuel charge

To allay power companies’ worries about fuel price volatility, the power ministry has proposed that fuel charge be a pass-through, subject to appropriate safeguards.

Pass-through of fuel charge offers full protection to the concessionaire against potential losses due to price rise, according to the model power purchase agreement (PPA). This means, the concessionaire can’t retain the benefit of reduced or concessional fuel prices.

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1 Response

  1. raj says:

    pl study the present pass through charges of fuel and purchase price (FPP) pass through in tariffs determined by state commissions . It is govt sanctioned and institutionalised loot
    FPP data is all shams . the prices which is displayed on websites bears no relationship with market realities . scrtinise the fuel bills u may notice only a small fraction of bills ar scrtunised. they are aselected selectively and not randoml;y. Fuel consumption is shownfar in excess of wha tthe guranteed figures , Balanc eof coa disappears . specific fuel consumption variies in unexplainable ways . the hish sea transaction shoe multiple bill and multiple transactions
    the grosssing of FPP is done that EHv consumers 220kV + also pays with loss grossin g of 35 % loss which in fact be zero as meters are at both enda he does not contribute to commercial loss
    such inequities are galore . it is as result of state commission sanctioned loot some DISCOMS show profit .

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