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Gencos may face action over low coal stock

16 May 2022

Power regulator Central Electricity Regulatory Commission (CERC) has proposed a reduction in the tariffs of electricity from plants that do not maintain adequate coal stocks.

The proposal is based on a directive issued by the union power ministry in February under Section 107 of the Electricity Act, for building adequate fuel inventory to avoid any crisis like in last August.

In order to recover full annual fixed charges, it is the obligation of the generating company to arrange sufficient fuel for its generating stations and maintain its availability at the plants as per the relevant regulations, said a CERC staff paper on the methodology for computing 'Deterrent Charges' for maintaining lower coal stock by coal-based generating stations.