Investor Presentaiton

Pooled Tariff - Cost Competitiveness Present Scenario States schedule power based on its own Merit Order Need ■ Beneficiaries of one region are not able to schedule power from stations in other regions since it does not have allocation. ■ As a result power from cheaper stations is not fully scheduled whereas power from costlier stations in other region is dispatched. ■ To optimally utilize the resource by running cheaper stations and reduce average cost of generation by creating framework to enable states to draw cheaper un- requisitioned power, thereby replacing costlier power resulting in savings to end customers. ☐ Already prevalent in many infrastructure sectors -Railways,steel,coal, petroleum and Power transmission. एनटीपीसी NTPC A Maharatna Company Methodology ■ The Fixed Charges of NTPC Coal and Gas based stations shall be pooled based on per MW basis and shall be apportioned to all beneficiaries on the basis of total allocation without change in capacity allocated. ■ Tariff determination as per existing CERC framework. Any increase in liability of states due to pooling shall be compensated by savings accrued through higher dispatch of cheaper ECR stations called Generation Bucket Filling (GBF). ■ Maximum utilisation of cheaper Pit head stations resulting in reduction in per unit cost of electricity. Availability of a large pool of reliable and affordable power. ◉ Benefits ☐ Optimal use of domestic coal by inter station transfer of coal. ■ Copyright © 2016 Your Company All Rights Reserved. Improvement in efficiency with respect to current level resulting in higher quantum of sharing of operating efficiency gains with States. 32

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