Non-Conventional Power Tariff Norm

The proposed Central Electricity Regulatory Commission is likely to fix tariffs for power from non-conventional units under the wheeling and banking policy.

Officials said the power ministry has recommended that the job be entrusted to the CERC. However, the issue is yet to be decided as the formation of the Commission has been delayed as the concerned Bill is yet to be cleared by Parliament.

Under the wheeling and banking scheme introduced by the ministry of non-conventional energy sources, power producers can bank energy produced by them with the Grid and draw it back at any other time and at any other place (within the state) as per their convenience. However, the producers right to draw this power back has been subjected to the following conditions:

A producer seeking to draw power for captive use, has to pay 2 per cent wheeling and banking charge.

Producers will be permitted to draw power for third-party sale.

Outright sale to SEBs will be governed by a mutually agreed tariff, keeping in view the tariff suggested by the ministry of non-conventional energy sources.

Sources said that the tariff suggested by the ministry of non-conventional energy sources was Rs 2.25 per unit at 1994 prices, with five per cent annual escalation.

However, this was not acceptable to many states.