**Executive Summary:**
This notification from the Central Electricity Regulatory Commission (CERC) announces annual escalation rates for energy procurement by distribution licensees, effective for the period between April 1, 2018, and September 30, 2018. These rates are applied for payment purposes, as per power purchase agreements aligned with Ministry of Power guidelines. This notification supersedes the notification dated April 19, 2018.
**Key Points / Main Content:**
* **Applicability:** Escalation rates apply to power procurement by distribution licensees as per existing power purchase agreements.
* **Timeframe:** Rates are applicable from April 1, 2018, to September 30, 2018.
* **Escalation Rates:**
* Domestic Coal: 0.00
* Domestic Gas: 9.71
* Imported Coal Based Plants:
* Imported Coal: 33.82
* Transportation of Imported Coal: 36.99
* Inland Handling of Imported Coal: 5.87
* Inland Transportation Charges for Coal:
* Up to 125 km: 81.86
* Up to 500 km: 23.64
* Up to 1000 km: 12.47
* Up to 2000 km: 7.50
* Beyond 2000 km: 6.03
* Inland Transportation Charges for Gas: 0.00
* Imported Gas Based Plants:
* Imported Gas: 1.78
* Transportation of Imported Gas: 36.99
* Inland Handling of Imported Gas: 5.87
* Indexed Capacity Charge Component Inflation Rate: 5.87
* Indexed Energy Charge Component Inflation Rate (Captive Fuel Source): 2.94
**Impact Analysis:**
**Distribution Licensees:**
* *Impact:* These entities are directly affected by the notified escalation rates, which determine payment amounts for power procurement during the specified period.
* *Action Required:* Distribution licensees must apply the specified escalation rates when calculating payments to power suppliers for the period of April 1, 2018, to September 30, 2018, according to existing power purchase agreements.
**Power Suppliers:**
* *Impact:* Payments received by power suppliers will be directly influenced by the announced escalation rates for energy and other related charges.
* *Action Required:* Power suppliers need to be aware of the updated rates to accurately calculate and reconcile invoices with distribution licensees.
Key Entities Referenced
Central Electricity Regulatory Commission: Regulatory body that issued the notification regarding escalation rates for power procurement.
Ministry of Power: Government ministry whose notification provides guidelines for tariff determination.
New Delhi: City in Delhi, India, where the notification was issued.
Power Purchase Agreement: Agreement between distribution licensees and power producers for procurement of power.
Sanoj Kumar Jha: Secretary of the Central Electricity Regulatory Commission.
imported coal: A type of coal for which escalation rates are specified in the notification.
imported gas: A type of gas for which escalation rates are specified in the notification.
Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees, dated 19.01.2005: Policy document providing the framework for tariff determination, referenced in the notification.
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[(cid:2)व(cid:4)ापन-III/4/असा-/144/18]
Central Electricity Regulatory Commission
NOTIFICATION
New Delhi, the 22nd June, 2018
No. Eco-1/2018-CERC.—In pursuance of Clause 5.6 (vi) of Ministry of Power 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, the Central Electricity Regulatory Commission notifies the following escalation rates for the
purpose of payment.
Annual Escalation Rates applicable for the period from 01.04.2018 to 30.09.2018 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:
S.No Description Annual Escalation
Rates for Payment
1 Escalation rate for domestic coal 0.00%
2 Escalation rate for domestic gas (-)9.71%
3 Escalation rates for different escalable sub-components
of energy charge for plants based on imported coal
3.1 Escalation rate for imported coal 33.82%
3.2 Escalation rate for transportation of imported coal 36.99%
3.3 Escalation rate for inland handling of imported coal 5.87%
4 Escalation rates for inland transportation charges for coal
4.1 Upto 125 Km distance 81.86%
4.2 Upto 500 Km distance 23.64%
4.3 Upto 1000 Km distance 12.47%
4.4 Upto 2000 Km distance 7.50%
4.5 Beyond 2000 Km distance 6.03%
5 Escalation rate for inland transportation charges for gas 0.00%
6 Escalation rates for different escalable sub-components
of energy charge for plants based on imported gas¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
6.1 Escalation rate for imported gas 1.78%
6.2 Escalation rate for transportation of imported gas 36.99%
6.3 Escalation rate for inland handling of imported gas 5.87%
7 Inflation rate to be applied to indexed capacity charge component 5.87%
8 Inflation rate to be applied to indexed energy charge 2.94%
component in cases of captive fuel source
2. This notification supersedes the notification dated 19.4.2018 issued for the period from April to September 2018.
SANOJ KUMAR JHA, Secy.
[ADVT.-III/4/Exty./144/18]
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.