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Indian power utilities unhappy with pricing methodology
Indian power utilities unhappy with pricing methodology
Indian power utilities refused to enter into Transmission Services Agreement with the Power Grid Corporation of India Limited due to the new 'Point of Connection pricing methodology. Much of the resistance has been directed at the substantial increase in the transmission tariff, following the regulation. Moreover, the charges are still higher for state generators. Orissa and Bihar, for example, are required to pay more while scheduling power from an inter-state generating station located within the state. Resistance has also been expressed over the basis of calculations for the tariff. Private power producers have complained that the PoC calculations are done on the basis of average energy scenario, instead of the required five seasonal scenarios, with peak and off-peak periods. In its defense, CERC has asserted that since it did not receive individual data from the states, it had to resort to using the average energy scenarios, instead. In fact, it claimed that a single PoC rate for the year is easy to comprehend and administer and gives a more stable signal. Utilities have also alleged that the present scenario, where actual PoC rates are converted into slabs, has resulted in cross subsidization. Nonetheless, the power watchdog has defended use of the slab approach, terming it to be a variant of the 'Min-max Fairness' principle, which would enable easy comprehension by the stakeholders as well as provide stability and certainty to the transmission pricing signal.
Ho Chi Minh City cuts down electricity use by 2.7%
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AboitizPower to put up Philippine coal-fired plant
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GE’s advanced aero technology to boost Indonesia’s power supply
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Japanese power companies work towards CO2 goal
The sector’s CO2 emissions were cut to 317 million tons, largely meeting protocol targets.
Hyundai gets $1.27B Vietnam coal-fired project
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Bangladesh braces for power price hike in winter
Dhaka Electricity Supply Co Ltd (DESCO) and West Zone Power Distribution Co Ltd have sought the Bangladesh Energy Regulatory Commission (BERC) approval to their proposals for a hike in retail power tariffs. In the proposals, up to a 21.94 per cent tariff hike in the city areas and around an 18.99 per cent increase in tariffs for 21 districts in the south-western region have been mooted. If the DESCO and West Zone Power proposals were cleared, the average retail power tariff per unit (Kilo Watt Hour) would stand at Tk. 5.28 as against the present Tk. 4.33 in the city and the tariff for south-western districts would increase from the present Tk. 4.53 to Tk. 4.77. The proposals were discussed thoroughly at an open meeting of the commission chairman, members and stakeholders, held at the BERC office here on Sunday. The DESCO had submitted its proposal to BERC on June 19, 2011 for a 13.16 per cent retail tariff hike while the West Zone Power proposal, submitted on June 20, sought a 13.11 percent hike. Later, in August this year, the DESCO revised its proposal and sought a 21.95 per cent hike in tariff. On August 2, West Zone Power sought an upward revision of its tariff hike proposal at 18.99 per cent. Incidentally, on February 8, 2011, the BERC had for the last time raised tariffs for bulk and retail electricity by 11 and 5 per cent, respectively, with retrospective from February 1. BERC chairman Syed Yusuf Hossain said end-users, ranging from domestic consumers to industrial entrepreneurs, would be saddled with an extra burden if the two proposal wee cleared. The open discussion on the proposals was organised by the commission at its Karwan Bazaar office in the city. Hossain said common people could not cope with the additional inflationary pressure as the prices of essential commodities had already gone beyond their reach due to an increase in energy and fuel prices in recent months. He urged DESCO and West Zone Power to be guided by their own judgments before proceeding to seek an increase in retail power tariffs, especially at a time when the country’s economy is facing a sharp fall in the balance of payments and a liquidity crunch. “Wide inflation has already kept the government under pressure. A fresh hike in power tariffs would only worsen the situation. As it is, we are being condemned by people for allowing your tariff hike proposals to be discussed. Is it not embarrassing for us?,” Hossain said while he was delivering a speech at the discussion. When DESCO and West Zone Power officials present at the meeting cited the rising cost of distribution as a reason for seeking a fresh tariff hike, Hossain advised them to revise their proposal downwards and take other effective measures. The other measures included reducing system loss, preventing illegal tapping of power, improving distribution services and going for viable expansion in case of new connections. Time has come to categorise the domestic consumers, Hossain said adding, since moneyed people enjoy luxurious living in air-conditioned residents at the same tariff rate the low-income group people pay for their power consumption. Meanwhile, the commission has announced that it would hear the DESCO proposal on October 20 and take up the West Zone Power proposal on October 24. During the February 2011 tariff hike announcement, the commission had said that the hike would not be applicable to domestic consumption of electricity between 1-100 units monthly, irrigation and non-residential (religious, social and educational institutions) connections. The commission chairman had then said the tariff increase for bulk power (11 per cent) would be implemented in two phases on July 31 and from August. He had also said the commission would set a ceiling on the tariff hike, at five per cent over the previous per unit rate of Tk. 4 (prevailing before February 2011), for retail consumers. Incidentally, last month, BERC rejected a tariff-hike proposal of the Rural Electrification Board. Similar proposals moved by Dhaka Power Distribution Co Ltd and Power Development Board are under the consideration of the commission.
Indian minister makes pitch for US investment in power sector
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TEPCO to shut down reactors at Fukushina nuclear plant by 2012
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China’s Changshu new power plant units set to be automated
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Nuclear reactors in S. Korea suffer numerous stoppages
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China orders closure of Jinko Solar manufacturing facility
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Shanghai Electric to develop projects, supply equipment in India
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