Goyal seeks regulators' inputs for power sector growth

Says 24X7 supply is first priority; any tariff revision should be done in a calibrated manner

Signalling the government and regulators are on the same page to push growth in the sector, power minister Piyush Goyal has asked the Forum of Regulators (FOR) to form working groups suggest ways to increase generation capacity and ensure 24x7 power supply.

FOR — a representative body of Central and state electricity regulatory commissions — has also been asked to suggest frameworks for renewable power obligations, establish smart grids, and remove transmission congestion.

Goyal wants FOR to submit its recommendations on energy management involving off-grid, renewable water conservation, and dip irrigation by revising the existing system of determining floor price for renewable energy certificates.

According to Goyal, FOR members should first provide 24x7 quality power supply and then consider appropriate tariff revision in a calibrated manner, while keeping the sensitivities of the consumers in mind.

FOR chairman Girish Pradhan, who also heads the Central Electricity Regulatory Commission (CERC), told Business Standard: “FOR will certainly consider formation of two working groups largely covering the regulatory and other aspects as mentioned by the power minister.''

According to Goyal, the regulators are in a better position than the government in taking bold steps as they are independent and supposed to be immune to extraneous interference and influences. The power minister told FOR that the issues faced by the sector are being addressed with a focus on ensuring credibility in the regulatory process.

Goyal informed the FOR that his ministry has drawn a roadmap to ensure coal linkages to the nearest plants, while allowing imported coal to be used by the plants located in coastal areas. Besides, the rationalisation exercise to ensure coal/fuel linkages to all power plants had been taken up. Further, Coal India had been formally requested to consider reduction of sale of coal through e-auction from the current level of 58 million tonnes to 28 million tonnes.

The minister said efforts were being made to ensure establishment of crushers at all coal mines to enable supply of crushed coal to the plants. The power ministry has approached the environment and forests ministry to provide necessary clearances to set up coal washeries.

Goyal assured FOR that the power ministry will examine the possibility of prescribing of hydro-power purchase obligations for generation and distribution utilities. This apart, he said the ministry will look into the issue of financing agricultural pumpsets with a payback period limited to four years.