New Delhi: Asserting that the present power tariff structure in India is very complex, a Parliamentary Committee on Power Ministry has emphasised that there is a great need for rationalisation of various key components of power tariff. The present power tariff structure is very complex and varied, "as such there is a great need for rationalisation of various key components of power tariff."
"The committee understands that having a uniform tariff across the country at present or in one go would be very difficult. However, the committee is of the opinion that the ministry should take concrete steps in the direction of rationalisation of tariff structure," the Parliamentary Committee said in its 26th report tabled in the Lok Sabha recently.
The committee chaired by Rajiv Ranjan Singh said that the Central government should undertake a comprehensive discussion with the State governments to address their concern in this regard so that this desired goal is achieved at some point in time. The committee also noted that the country has a total installed capacity of 3,88,848 MW, whereas, the peak demand so far has been about 2,00,000 MW.
"The plant load factor (PLF) of coal and lignite-based power plants in the country during the year was 53.37 per cent. The underutilisation of such power plants leads to the payment of fixed cost by the DISCOMS which is ultimately passed on to the end consumers," the committee said in its report. It further said that the aggregate technical and commercial (AT&C) losses in the country are still about 21 per cent which needs to be brought down in a time-bound manner and the benefit accrued thereon should be passed on to the consumers in the form of a lower tariff.
"The government should suitably amend the present tariff policy not only to enable it to cater to the needs of the changed scenario but also to achieve its unaccomplished goals, particularly in connection with the efficiency to ensure affordable tariff, rationalisation to bring down the generation cost and financial viability in the distribution sector," the Committee said.
Asserting that there is no dearth of indigenous coal in the country, the committee is of the view that the endeavour of the central government should be maximum utilisation of coal-based thermal plants in the country by restricting their emission by various interventions including the use of carbon capture technology.
