Electricity Companies to pay for actual quality coalPosted: July 2, 2013
Electricity Companies to pay for actual quality coal- states CERS
Ahmedabad, 11th June, 2013
Consumer Education Research Society (CERS), the most active and powerful consumer body in power sector of India has demanded that all State Electricity Regulatory Commissions (SERCs) should direct State and Private Generation Companies of respective States to pay Coal India Ltd (CIL) for actual quality and quantity of coal received at their power stations. CERS requests Shri. Ashok Chawla Chairman of Competition Commission of India (CCI) and Shri Jyotiraditya Scindia Hon’ble Power Minister to take immediate action in this matter to protect electricity consumers of India from illegal practices being followed by Coal India Ltd.
In present scenario the electricity companies are paying as per agreements signed with CIL for C or D grade of coal which has calorific value ranging from 4000 to 5000 kcal/ kg. In fact CIL is supplying them inferior quality of E & F grade of coal with calorific value of 3000 – 3500 Kcal / Kg. Earlier also CERS had made representation before Ministry of Power and Competition Commission of India to direct CIL to deliver quality of coal as per agreement. The Central Generation Company National Thermal Power Corporation (NTPC) recently raised this issue with CIL and signed fresh agreement where NTPC will carry out joint sampling of coal either at CIL end or NTPC end and will make payment to CIL as per actual weight and actual calorific value of coal received at its each power station. This will reduce the cost of coal atleast by 25-30% thus reducing the burden on consumers of India.
CERS demands that similar agreements should be signed between State & Private generating Companies and requests all SERCs to issue such directives to sign revised agreements with Coal India Ltd. When State Companies have already signed similar agreements with Foreign Coal Suppliers then they should follow similar agreements with Coal India Ltd. It is really shocking that this burden is transferred on consumers by SERCs through Fuel Cost Adjustment (FCA) of Fuel Price & Power Purchase Adjustment (FPPPA) charges which are revised every quarter by Electricity Companies in India. These malpractice of supplying less and inferior quality of coal increases coal consumption by 25-30 %.
CERS recently wrote to Gujarat Electricity Regulatory Commission (GERC) to implement similar procedure as adopted by NTPC and directed Gujarat Urja Vikas Nigam Ltd (GUVNL) and Torrent Power Ltd to sign fresh agreement in line with NTPC to reduce burden on consumers of Gujarat. The State Entity Gujarat State Electricity Corporation Ltd (GSECL) uses 0.75 to 0.8 Kg of coal for generation of one unit. In practice you need just 0.6 kg /Kwh thus increasing coal consumption.
CERS has warned that if no action is initiated before 31st August 2013, then CERS will initiate legal action and file Public Interest Litigation (PIL) before Gujarat High Court to bring logical end to this matter where Monopolies are exploiting electricity consumers of India with Regulatory Commissions being silent spectators.
For further information please contact: K.K.Bajaj CGM (Hon)–CERS – AHMEDABAD
Email : email@example.com