The power ministry on Tuesday said it will not allow the country’s largest power producer NTPC to sell electricity at market-determined prices.
“We are not agreeing to NTPC’s proposal. Our interest is to serve the country and not make profit,” Power Secretary HS Brahma told reporters on the sidelines of the Asia Gas Partnership Summit organised jointly by GAIL and FICCI.
Brahma, however, added that as per the Electricity Act 2006, the company or NTPC can sell power in the open market (market determined prices) from April 2011.
“The company has so much work to do they have so much to add in wind, solar sector etc,” Brahma said adding they should concentrate on that.
At present, NTPC sells 100 per cent of its power to the state power utilities and distribution companies through long-term power purchase agreements.
This exchange takes place as per allocation finalised by the Ministry of Power and based upon a tariff determined by power sector regulator CERC.
As per the Electricity Act, a generating company can supply electricity to any licensee. It can tie up part-capacity of its generating station in long-term power purchase agreements.