CERC issues a staff paper on blending of imported coal with domestic coal to mitigate the domestic coal shortage

The Central Electricity Regulatory Commission (CERC) has issued a staff paper on blending of imported coal with domestic coal to mitigate the domestic coal shortage.

The Ministry of Power (MoP) had issued direction to CERC under section 107 of the Electricity Act, 2003 to amend the regulations to facilitate higher blending of up to 30 per cent with imported coal subject to technical feasibility, without the requirement of prior consultation with beneficiaries up to March 31, 2023. An analysis by CERC reveals that the weighted average energy charge rate (ECR) exceeds the threshold limit of ECR even at less than 10 per cent blending with imported coal, thereby requiring the consent of the beneficiary and that the weighted average ECR is less than the current level of market clearing price on the power exchanges. The CERC has invited comments as to what extent of blending of imported coal be allowed, and to what extent the increase in ECR over and above base energy charge rate be allowed upon blending of imported coal, without the permission or consultation of the beneficiaries.

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