Coal-starved captive producers push spot power price to Rs 11.41/unit

Spot power price touched 5-year high of Rs 11.41 per unit at IEX today, which experts attributed to aggressive bidding by captive units following government's decision to ramp up coal supplies to power plants.

The government decided last week to augment coal supplies to centre/ state power plants and independent power producers (IPPs) from May 19 to June 30 to overcome shortage of the dry fuel and check power crisis.

The decision was taken in a joint meeting of power, coal and railways ministries on May 17, 2018.

"The government is ramping up coal supplies to power plants at the cost of captive power producers. This is one of the main reasons for price touching a peak of Rs 11.41 per unit in day ahead market today at IEX," Indian Captive Power Producers Association(ICPPA) Secretary Rajiv Agarwal told PTI.

He further said: "If somebody is running continuous process-based industry like aluminium, then he cannot wait for power supply. They are required to arrange power for their businesses."