The Economic Times has reported that the Ministry of Power is seeking advice of regulator Central Electricity Regulatory Commission. This is towards tackling fuel availability for certain projects. It is believed that existing power capacities of 37,680 MW and upcoming capacities of 28,000 MW could benefit from the outcome. One outcome being discussed is a provision for passing on the additional costs to customers.

A few years ago, through the process of competitive bidding, power producers signed power purchase agreements. These were done keeping certain factors in mind. The factors included assurance in terms of coal supplies; largely to be made by Coal India (CIL). However, CIL has been unable to meet its obligations. This has led power producers to resort to importing coal. Such coal is costlier by about 40% as compared to domestic coal. With fuel prices moving up, it's the power producers who have been impacted as their project viability has come under question. Passing on costs is a difficult and lengthy process and one that the government does not prefer considering that the eventual impact would be on the final consumers.

On an overall basis, it does indicate the sticky situation the government is in. While on one hand, there are concerns relating to power shortage and possibly systemic failures. But without appropriate pricing, power produces may not want not add capacities. Either way, it does seem that the consumers who be bearing the cost burden.