NTPC not to sell power in market

New Delhi, March 23 PTI
The Power Ministry today said it would not allow the NTPC to sell electricity at market-determined prices."We are not agreeing to the NTPC's proposal. Our interest is to serve the country and not to make profit," power secretary H S Brahma told reporters on the sidelines of the gas partnership summit here.

He, however, added that as per the Electricity Act 2006, the NTPC could 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 the wind, solar sector etc," Brahma said, adding that the they should concentrate on that.

At present, the NTPC sells 100 per cent of its power to the state power utilities, distribution companies through long-term power purchase agreements.

This exchange takes place as per allocation finalised by the Ministry of Power and based on the tariff determined by the power sector regulator CERC.

As per Electricity Act, 2003, a generating company can supply electricity to any licensee. It can tie up part-capacity of its generating station in long-term power purchase agreement. — PTI