In order to comply with the revised environmental norms as issued on December 7, 2015, several coal-based thermal power plants will be retrofitted with equipment that would result in reduced emission from these plants. With the smog and pollution reports in regions like Delhi/NCR, this looks to be a necessary move. While the Central Electricity Authority has already prepared a detailed plan for the implementation of these norms and how to manage the disruption when the plants are down for this retrospective fitting, it looks like the biggest brunt will be faced by the consumers.
To meet the expected capital expenditure of Rs 70 lakh to Rs 1 crore per megawatt for the plants, a tariff hike of almost 62-93 paisa per unit will be levied in the first year of the retrofitting exercise according to the power minister, Mr. RK Singh. This would take the existing tariff from about Rs 5 per unit to close to Rs 6, a hike of about 15-20%.
It is not clear exactly when will this norm come into regulation but when it does, it will see the tariff rise across India and is expected to be a cause of big concern. It is to safeguard against such periodic price rise that installing a rooftop solar system on your own house can be such a benefit. When you go solar, not only are you assured of savings on your electricity bill and a very lucrative Return on your Investment, you also lock in your tariff for 25 years.
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Source: Economic Times
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