CERC issues suo-moto order pertaining to blending of imported coal with domestic coal

The Central Electricity Regulatory Commission (CERC) has issued a suo-moto order pertaining to blending of imported coal with domestic coal to mitigate the domestic coal shortage.

In order to facilitate availability of adequate quantum of coal in thermal power plants to ensure smooth and uninterrupted generation and in turn to aid the distribution companies to meet their universal supply obligation to consumers, CERC in its suo-moto order has allowed that prior permission from beneficiaries shall not be a precondition for blending upto 20 per cent from alternate sources of fuel supply including imported coal, subject to technical feasibility, unless otherwise agreed specifically in the power purchase agreement. Further, the ceiling on allowed escalation of variable cost to 30 per cent over the base tariff due to blending has also been dispensed with till further order. The order shall remain operative till October 10, 2022 or until further orders, whichever is earlier.

 

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