Increased Coal prices may hike Electricity tariffs by 11 paise per unit

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Increase in Coal Prices may lead to an increase in electricity prices by 11 paise per unit, rating agency ICRA stated. This expected increase in power tariffs is fuelled by CIL revising coal prices by around 15-18% effective from Tuesday midnight.

According to Mint the agency in a statement said, “This along with the levy of evacuation charges of Rs50 per MT is estimated to increase the cost of generation for coal-based power plants by about 13-15 paise/unit, as per ICRA estimates.”

Of India’s installed power generation capacity of 330,860.58 megawatts (MW), 58% or 192,971.50 MW is fuelled by coal.
Some media reports are also stating that the high prices of Coal have come at a point in time when the demand for electricity increased.

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