New Delhi : Country’s largest power producer NTPC’s net profit dipped by 5 per cent to Rs 2,944.03 crore in the fourth quarter ended March, 2014-15 on stringent CERC tariff norms and higher depreciation under new accounting rules. Net profit in the January-March quarter of the previous fiscal, 2013-14, was Rs 3,093.54 crore.
NTPC said in a statement that as per power sector regulator Central Electricity Regulatory Commission’s (CERC) tariff regulation effective from 2014-15 to 2018-19, the financial incentives are to be based on actual generation of power than on the basis of available generation capacity. It has linked the financial incentives to power producers with the purchase of electricity by power distribution companies.
In present scenario, as discoms (power distribution firms) always have funds crunch to buy electricity, power producer’s generation capacity remains below the installed capacity.
NPTC has filed a petition in the Delhi High court, contesting Regulation 2014 of CERC, said the statement Also, NPTC said it has revised its accounting policy for depreciation of certain assets in alignment with Schedule-II of the Companies Act 2013 effective from April 1, 2014.
For the entire fiscal 2014-15, the state-run firm’s net profit fell by 6.3 per cent to Rs 10,290.86 crore. The net profit was at Rs 10,974.74 crore in 2013-14. NTPC decided to pay dividend of Rs. 2.50 per share;
The company’s plant load factor (PLF) during January-March quarter was 82.88 per cent for coal based plants and 26.68 per cent for gas-based plants. The PLF was at 88.70 per cent and 35.64 per cent respectively in same period a year ago.
PLF is a measure of average capacity utilisation. The power company has total installed power generation capacity of 44,398 MW. During 2014-15, its average tariff was Rs 3.28 per unit.