CERC calculates FY19 average power price at Rs 3.60 per unit

The national-level cost was derived by computing average prices paid by all states/UTs, weighted by volume of conventional power purchased by them.

Written by FE Bureau

June 8, 2019 04:21 IST

Electricity tariffs, CERC, non-renewable electricity, Rs 3.60/unit, renewable energy, power prices

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 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.

This article was first uploaded on June eight, twenty nineteen, at twenty-one minutes past four in the morning.