NTPC plans to load cheaper power first, plans new despatch schedule

NTPC, India’s largest thermal power producer, is planning a power despatch schedule wherein cheaper power will be loaded first. The move aims to reduce the cost of power for state-owned power distribution companies (discoms) that are facing financial difficulties. This approach will replace the existing merit order despatch of power, which is based on availability. Company officials said if cheaper power was made available for states, the demand would also pick up and states could plan their power supply accordingly. 

bout half of NTPC’s 40.4 Gw coal-based installed capacity, generates power at Rs 3 or lower. The company will add a 5,000-Mw coal-based capacity this year. “The average tariff of NTPC has not increased in the past five years and remained in the range of Rs 3.23-3.25 per unit. This is despite the cost of coal increasing by 35 per cent during the same period. We have recovered the fixed cost for most of the power plants and thereby plan to pass on the cheaper electricity in an efficient manner across the country,” said an official.