Discoms make a beeline for cheaper power supplied by NTPC under SCED

"A large number of discoms are availing benefit under the SCED system to get cheaper power supplies," a source said

A large number of discoms are making a beeline for the power supplied by NTPC under the SCED system which facilitates supply of cheaper electricity on priority, industry sources said.

Under SCED (Security Constrained Economic Dispatch), implemented over a year ago, power generating companies raise capacity utilisation of more efficient plants or of those units which are located closer to coal mines and thus have lower freight cost.
 
As a result, the cost of power production goes down, which benefits both the distribution companies (discoms) and end consumers.
 
The mechanism then pools supply from selected stations on