Tangedco seeks clarity in norms for blending imported coal with domestic coal

Central Electricity Regulatory Commission allowed generation companies to blend domestic coal with up to 20% of alternative sources without permission from beneficiaries

October 03, 2022 11:16 am | Updated 11:16 am IST - CHENNAI

Tangedco has sought clarification in a Central Electricity Regulatory Commission’s suo motu order allowing generation companies to blend domestic coal with up to 20% of alternative sources, including imported coal, without taking permission from the beneficiaries (distribution companies).

On July 26, 2022, the Commission issued the order amid coal shortage and said it would remain operative till October 31 this year or until further orders, whichever is earlier. For blending the imported coal, generation companies were allowed to pass on the cost to the distribution companies.

On May 26 this year, the Union Ministry of Power directed the distribution companies to compensate the generators on account of blending of imported coal as per the prescribed methodology. Later, on August 11, it withdrew the directions with immediate effect.

Tangedco has pointed out that the Commission’s order has stated that the amendment is valid up to October 31.

The date from which the order has to be considered — i.e., whether from May 26, 2022 or July 26, 2022 — is not mentioned, it added.

The Commission also have to issue an order for withdrawal of the suo motu order, Tangedco said.

The State utility has mentioned it as part of agenda item for meeting of the commercial sub-committee of Southern Regional Power Committee, under the Central Electricity Authority.

Kerala State Electricity Board Limited has also sought clarity over the percentage of blending with imported coal by the generators. The beneficiaries need to know the power purchase cost for intimation to the State regulatory commission, it said.

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