State ministers looking at pooling NTPC power, rationalising tariffs

States are willing to consider a proposal to reduce electricity tariffs through rationalised subsidies and pooling the power that NTPC supplies, said Piyush Goyal, Minister of State for Power, Coal, New & Renewable Energy, and Mines.

Speaking at a press briefing on the day two of the Conference of Power, Renewable Energy, and Mines Ministers of States/UTs here in Delhi, Goyal said, “NTPC has proposed to pool the generated power and this will significantly lower purchase costs for state government-run power distribution companies.” This proposal is being considered by the States and a final call will be taken by them, he added.

Under this concept, the Fixed Charges (Capacity Charges) of all NTPC Stations shall be pooled based on per MW basis which means all States would pay at the same rate of fixed charges post pooling in terms of rupee crore per MW.

The pooling will also ensure only marginal increase in fixed cost liability for new capacity addition. NTPC assess that this will effectively reduce the average energy charge rate (ECR) of all NTPC stations and benefit all Sates.

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