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New UserSurplus power capacity, enough coal likely to beat summer heat
10 Apr 2017
The summer of 2017 may not prove as uncomfortable for electricity consumers
across India as the season in previous years, thanks to surplus power generation capacity,
adequate coal stocks and improved purchasing ability of distribution companies.
Barring pockets in certain states such as Uttar Pradesh, Punjab and Jammu & Kashmir
which lack interstate transmission connectivity, consumers in most other regions are likely
to have sufficient electricity access.
Generators are looking forward to better utilisation of power plants, resulting in better
revenues, as the Meteorological Department has predicted a warmer summer this year.
Power prices in the spot market touched Rs 3 per unit in the last week of March, following a
sudden spurt in temperatures due to heat wave conditions in most parts of the country.
The prices have now been settled at about Rs 2.85 per unit with increased supply from
underutilised projects, but rates for southern states have risen to Rs 3.65 per unit.
A senior official in the Central Electricity Authority said states such as Bihar, Telangana,
Chhattisgarh and Punjab have made affordable shortterm power arrangements for the summer season at an average tariff of Rs 3.5 per
unit.
Haryana, Arunachal Pradesh, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Telangana and Tamil Nadu are among the states that
often buy electricity from power exchanges.
Source: Economic Times