The Ministry of Power (MoP) on April 20, 2023, issued a notification regarding the Scheme for Pooling of Tariffs of those plants whose PPAs have expired.
With the objective to facilitate the States to optimize their electricity generation/availability portfolio, the Ministry of Power, considering the request of the States, vide guidelines dated March 22, 2021, allowed the States to exit from PPAs with Central Power Sector Utilities after the expiry of the PPA period. After that, many States and Distribution companies exited from PPAs of costlier plants (non-pit head coal stations and Gas based thermal generating stations), while retaining the PPAs of cheaper plants. This trend may be detrimental to the resource adequacy in the power system.
A detailed mechanism in this regard was finalized after consultation with States and other stakeholders, the Draft scheme was circulated on November 15, 2022, and is attached to the document, and comments received have been examined. All the concerned organizations shall take necessary action to implement the scheme with effect from July 01, 2023.
[Notification No. 2312312020-R&R/RCM]
