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Date: 07-Feb-2024 Category: Extra Ordinary State: Union Government Country: India

In pursuance of Clause 5 6 vi of Ministry of Power MOP Notification on Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees

Issued by Central Electricity Regulatory Commission · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The notification issued by the Central Electricity Regulatory Commission (CERC) announces the monthly escalation rates applicable for December 2023 for payments related to power procurement by distribution licensees. These rates pertain to imported coal and its associated transportation and handling.

Key Changes

  • The notification specifies the following monthly escalation rates for payment purposes:
  • Escalation rate for imported coal: -5.87%
  • Escalation rate for transportation of imported coal: 3.27%
  • Escalation rate for inland handling of imported coal: -0.75%
  • These rates are applicable for Power Purchase Agreements (PPAs) entered into under the “Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees” issued by the Ministry of Power.

Impact Analysis

Distribution Licensees

  • Action Items: Distribution licensees need to incorporate these updated escalation rates into their payment calculations for December 2023 and subsequent periods, as applicable, under existing PPAs. They should also re-evaluate their procurement strategies based on these rates.

Thermal Power Plants

  • Action Items: Thermal power plants should review their contracts and financial models to assess the impact of the revised escalation rates on their profitability. They may need to renegotiate contracts or adjust their operational strategies.

Consumers

  • Action Items: Regulators and distribution companies should monitor the impact of these escalation rates on consumer tariffs and take appropriate measures to mitigate any adverse effects.

Coal Importers and Transporters

  • Action Items: Coal importers and transporters should re-evaluate their pricing strategies based on these rates.

Key Entities Referenced

Central Electricity Regulatory Commission (CERC): The regulatory body that issued the notification and is responsible for regulating the power sector in India. Ministry of Power (MOP): The government ministry that issued the original guidelines for tariff determination and the SHAKTI policy. Distribution Licensees: Entities responsible for distributing electricity to consumers. Thermal Power Stations: Power plants that generate electricity using thermal energy, often fueled by coal. SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy: A policy by the Ministry of Power for transparent allocation of coal in India. Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees: Guidelines issued by the Ministry of Power which provides framework for tariff determination through bidding process for power procurement.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-07022024-251922 xxxGIDHxxx CG-DL-E-07022024-251922 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण्ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 84] नई दिल्ली, बुधिार, फरिरी 7, 2024/माघ 18, 1945 No. 84] NEW DELHI, WEDNESDAY, FEBRUARY 7, 2024/MAGHA 18, 1945 ubZ fnYyh] 31 fnlEcj] 2023 .—Þforj.k vuqKfIr/kkfj;ksa }kjk ÅtkZ dh mikfIRk ds fy, cksyh çfØ;k }kjk VSfjQ dk vo/kkj.k djus gsrq ekxZn'kZd fl)karß ls lacaf/kr fo|qr e=a ky; dh le;≤ ij ;Fkkla'kksf/kr rkjh[k 19-01-2005 dh vf/klwpuk ds [kaM 5-6 ¼vi½ ds vulq j.k esa] dsUnhz; fo|qr fofu;ked vk;ksx dk s fo|qr e=a ky; ds i= fnukad 13-04-2022 vkSj **'kfDr ¼Hkkjr eas dks;yk] ikjn'khZ :Ik eas vkcafVr djus okys vkSj gkusZflax ds fy, ;kstuk½ uhfr** fnukad 06-03-2019 ds ch¼I½] ch¼III½ vkSj ch¼IV½ ds v/khu dk;s ys ds vkcaVu lfgr ekWMy cksyh nLrkostks a ds v/khu ;FkkçnÙk fMtkbu] fuekZ.k] foÙk] LokfeRo vkSj çpkyu ¼Mhch,Qvksvks½ vk/kkj vkSj lzksr bZa/ku ij LFkkfir FkeyZ ikoj LVs'kuks a ls fo|qr dh nh?kZdkfyd mikfIr ds fy, ekxZfunsZ'k** ds la'kk/s ku ij fnukad 11-07-2022 ds çLrko ds vuqlj.k eas] dsfofovk Hkqxrku ds iz;kstu ds fy, fuEufyf[kr o`f) njks a dks vf/klwfpr djrk gSA 1- vk;kfrr dks;ys ds fy, o`f) nj (-)5.87% 2- vk;kfrr dks;ys ds ifjogu ds fy, o`f) nj 3.27% 3- vk;kfrr dks;ys dh varnZ's kh; mBkbZ&/kjkbZ ds fy, o`f) nj (-)0.75% gjizhr flag çqFkh] lfpo [जिज्ञापन-III/4/असा./739/2023-24] 852 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] CENTRAL ELECTRICITY REGULATORY COMMISSION NOTIFICATION New Delhi, the 31st December, 2023 No. Eco-M12/2023-CERC.—In pursuance of Clause 5.6 (vi) of Ministry of Power (MOP) Notification on “Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees” dated 19.01.2005 as amended from time to time, MOP communication to the Central Electricity Regulatory Commission (CERC) dated 13.04.2022, and MOP Resolution dated 11.07.2022 on amendment to the “Guidelines for long term Procurement of Electricity from Thermal Power Stations set up on Design, Build, Finance, Own and Operate (DBFOO) basis and sourcing fuel as provided under Model Bidding Documents including allocation of coal under B (I), B(III) and B(IV) of SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy” dated 6.03.2019, the CERC notifies the following escalation rates for the purpose of payment. Monthly Escalation Rates applicable for December 2023 for the purpose of payment for Procurement of Power by Distribution Licensees as per the Power Purchase Agreement entered into under the Guidelines mentioned above: Sr. No. Description Monthly Escalation Rates for Payment 1 Escalation rate for imported coal (-)5.87% 2 Escalation rate for transportation of imported coal 3.27% 3 Escalation rate for inland handling of imported coal (-)0.75% HARPREET SINGH PRUTHI, Secy. [ADVT.-III/4/Exty./739/2023-24] Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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