The average price at which states procured non-renewable electricity (mostly coal-based) in FY19 was Rs 3.60/unit, according to the latest calculations done by the Central Electricity Regulatory Commission (CERC). The figure is about 2% higher than the average price in FY18. The price do not include transmission charges. The total cost of non-renewable power in FY19 across the country was Rs 3.9 lakh crore, 5.6% higher than that of the previous fiscal. The volume of such electricity consumed was 1,093 billion units, up 3.3%.
The national-level cost was derived by computing average prices paid by all states/UTs, weighted by volume of conventional power purchased by them. The major states which paid the highest power prices are Bihar (Rs 4.12/unit), Jharkhand (Rs 3.99/unit), Gujarat (Rs 3.98/unit), Telangana (Rs 3.92/unit) and Delhi (Rs 3.90/unit).
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Electricity tariffs from thermal generating stations are determined either by the cost-plus system (based on actual expenses and expected returns), or through competitive bidding. The average price of non-renewable electricity helps to calculate the compensation for wind or solar plants which sell power under the ‘renewable energy certificates’ framework, and for captive plants without power purchase agreements.