8 months ago
Coal Quality Slippages Raise Electricity Costs for Consumers
A study by the Prayas Energy Group found that the quality of coal used in power plants is often lower than what is paid for.
This happens because the coal's quality changes from when it is bought to when it is used.
This problem makes electricity more expensive for everyone.
The study says that better ways to check the coal's quality, like using machines that can't be tampered with, could help.
If these changes are made, electricity might become cheaper.
The study gives examples from power plants in Maharashtra and NTPC to show how much money is being wasted because of this issue.
A study by the Prayas Energy Group highlights significant slippages in coal quality, leading to higher electricity costs for consumers.
Coal quality is determined by its Gross Calorific Value (GCV), and discrepancies in GCV result in higher costs for electricity generation.
Examples from Maharashtra State Power Generation Company and NTPC show slippages of up to 1,200 kcal per kg, equivalent to a 61% markup on raw coal prices.
The study suggests implementing automated, tamper-proof processes for coal quality sampling and determining coal quantity against GCV 'As Purchased' to reduce energy charges by 13%.
Current regulatory practices allow slippages to be passed on to consumers, with no accountability for the quality of coal from the mine to the power plant.
- Who
- Prayas Energy Group, Maria Chirayil, Ashok Sreenivas, Rohit Patwardhan, Coal India, NTPC, Maharashtra State Power Generation Company
- What
- A study highlighting coal quality slippages leading to higher electricity costs for consumers
- Where
- India
- When
- Published on January 16, 2026
- Why
- To address the issue of coal quality slippages and their impact on electricity tariffs
Key facts
- Study Conducted By
- Prayas Energy Group
- Authors
- Maria Chirayil, Ashok Sreenivas, Rohit Patwardhan
- Coal Quality Measurement
- Gross Calorific Value (GCV)
- Coal India's Market Share
- 76% of India's steam coal
- Impact on Tariffs
- 13% lower energy charges with proposed changes
- Example of Slippage
- 1,200 kcal per kg in Maharashtra State Power Generation Company
- Date Published
- January 16, 2026
Quotes
Prayas Energy Group
A research group that conducted the study on coal quality and its impact on electricity costs.
“Since regulatory scrutiny is only introduced at this point, there is no accountability for slippages between the loading point at the mine end and this point of receipt, though legally ownership of coal transfers to the power generator at the mine end. The impact of all such slippages is passed on to the consumer, leaving little incentive to control the slippages.”
thehindubusinessline.com
“This is well above the expected 1 per cent transit losses. In FY22, the difference of about 300 kcal per kg amounted to an extra payment of about ₹69 per tonne (or 8.34 per cent) of coal at prices prevalent at the time, by NTPC on account of sampling weaknesses.”
thehindubusinessline.com
Sources
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