Private companies may be allowed to trade in power
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04/12/1999
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Economic Times (New Delhi)
Power trading between deficit and surplus regions, restricted to Power Trading Corporation until now, is likely to be opened up to the private sector as well. The Electricity Bill 2000, which was circulated by the power ministry, allows setting up of private power trading and energy service companies. This is in line with the new policies of the government and the change in the tariff structureof utilities. Unlike the earlier system where tariffs were linked to plant load factor, the new availability-based tariff, which has been proposed for the central power utilities, is based on availability of power that encourages trading of power.