Power Producers Challenge CERC's Infirm Power Rule

The new CERC regulation eliminating payment for infirm power before commercial operation has sparked backlash from power producers, who argue it incurs significant financial losses during the testing phase. The rule affects thermal plants and could lead to higher consumer costs and hinder India's power capacity expansion goals.

Power producers are voicing strong opposition to the Central Electricity Regulatory Commission's (CERC) recent ruling that removes mandatory payments for power supplied to the grid before commercial production begins. This change, they argue, threatens severe financial losses.

An association of power producers has appealed to CERC, requesting a review of the provision on infirm power—power generated during trial runs before plants are commercially operational.

The absence of payment for infirm power could result in losses amounting to Rs 1,000 crore for thermal power generators over the trial period, which can span from six months to a year, industry representatives claim.

(With inputs from agencies.)