Average price from conventional power plants rises to Rs 3.85/unit in FY21

The average cost at which states purchased electricity from non-renewable energy sources in FY21 has been calculated to be Rs 3.85/unit by the Central Electricity Regulatory Commission (CERC).

The figure is about 7% higher than the average price applicable in FY20.

As per the CERC’s calculations, the states consumed 1,118.6 billion units of non-renewable electricity in the fiscal. Power from conventional sources comprise more than 90% of electricity supplied in the country.

The national-level average power purchase cost (APPC) is derived by computing average prices paid by all states/UTs, weighted by volume of conventional power purchased by them. The major states which pays the highest power prices are Assam (Rs 5.14/unit), Uttar Pradesh (Rs 4.45/unit), Karnataka (Rs 4.38/unit), Bihar (Rs 4.256/unit) and Maharashtra (Rs 4/unit).

The national APPC for FY17, FY18, FY19 and FY20 were Rs 3.40/unit, Rs 3.48/unit, Rs 3.53/unit and Rs 3.60/unit, respectively.

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.

APPC helps in the calculation of penalties payable by open access and captive wind and solar generators for deviating from their respective scheduled electricity supply volumes.