CERC RAISES POWER RETURNS BASE TO 15.5% FOR FIVE YEARS
Central power sector utilities such as NTPC and NHPC will now be able to earn a higher rate of return on their equity investment in projects. The Central Electricity Regulatory Commission
(CERC) issued new tariff regulations for next five years under which the base rate for return on equity (RoE) has been raised from 14% to 15.5%.As an incentive, CERC has also allowed additional RoE of 0.5% to those projects which are commissioned on time. The move will help power generating and transmission companies get higher profitability, and thus attract increased investment in the current depressed market conditions.
(CERC) issued new tariff regulations for next five years under which the base rate for return on equity (RoE) has been raised from 14% to 15.5%.As an incentive, CERC has also allowed additional RoE of 0.5% to those projects which are commissioned on time. The move will help power generating and transmission companies get higher profitability, and thus attract increased investment in the current depressed market conditions.
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