Executive Summary:
This notification from the Central Electricity Regulatory Commission (CERC) announces annual escalation rates for payment related to power procurement by distribution licensees. These rates apply to the period between October 1, 2018, and March 31, 2019, as per existing power purchase agreements. The rates are in accordance with guidelines from the Ministry of Power.
Key Points / Main Content:
* The Central Electricity Regulatory Commission notifies the escalation rates for payment purposes.
Escalation Rates for Various Categories:
* Domestic Coal: 21.66
* Domestic Gas: 25.66
* Imported Coal Based Plants (Energy Charge Subcomponents):
* Imported Coal: 2.98
* Transportation of Imported Coal: 35.14
* Inland Handling of Imported Coal: 2.30
* Inland Transportation Charges for Coal:
* Up to 125 Km: 44.11
* Up to 500 Km: 40.47
* Up to 1000 Km: 39.54
* Up to 2000 Km: 39.09
* Beyond 2000 Km: 38.96
* Inland Transportation Charges for Gas: 0.00
* Imported Gas Based Plants (Energy Charge Subcomponents):
* Imported Gas: 35.14
* Transportation of Imported Gas: 35.14
* Inland Handling of Imported Gas: 2.30
* Inflation Rate for Indexed Capacity Charge Component: 2.30
* Inflation Rate for Indexed Energy Charge Component (Captive Fuel Source): 5.54
Impact Analysis:
Distribution Licensees:
* Impact: Determines the escalation rates applicable to their power procurement costs for the specified period.
* Action Required: Apply the notified escalation rates when making payments to power suppliers for the period between October 1, 2018, and March 31, 2019, as per their power purchase agreements.
Power Suppliers:
* Impact: Affects the revenue received from distribution licensees based on the notified escalation rates.
* Action Required: Ensure invoices reflect the correct escalation rates for the specified period.
Key Entities Referenced
Central Electricity Regulatory Commission: A statutory body responsible for regulating the electricity sector in India.
Ministry of Power: The ministry responsible for the development of the power sector in India.
New Delhi: The location where the notification was issued.
Procurement of Power by Distribution Licensees: The activity of distribution companies acquiring electricity, which is the subject of the guidelines referenced.
Power Purchase Agreement: An agreement between a power generator and a distribution company for the sale and purchase of electricity.
Guidelines for Determination of Tariff by Bidding Process: The policy document issued by the Ministry of Power that provides guidelines for determining electricity tariffs through a bidding process.
Tariff: The schedule of rates at which a public utility company, such as an electricity provider, provides services to customers.
Mayapuri, New Delhi: Location of the Government of India Press.
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(cid:1)[िव(cid:3)ापन- III/4/असा./328/18](cid:1)
CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 15th October, 2018
No. Eco-2/2018-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 01.10.2018 to 31.03.2019 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 21.66%
2 Escalation rate for domestic gas 25.66%
3 Escalation rates for different escalable sub-components
of energy charge for plants based on imported coal
3.1 Escalation rate for imported coal 2.98%
3.2 Escalation rate for transportation of imported coal 35.14%
3.3 Escalation rate for inland handling of imported coal 2.30%
4 Escalation rates for inland transportation charges for coal
4.1 Upto 125 Km distance 44.11%
4.2 Upto 500 Km distance 40.47%
4.3 Upto 1000 Km distance 39.54%
4.4 Upto 2000 Km distance 39.09%
4.5 Beyond 2000 Km distance 38.96%
5 Escalation rate for inland transportation charges for gas 0.00%¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
6 Escalation rates for different escalable sub-components
of energy charge for plants based on imported gas
6.1 Escalation rate for imported gas 35.14%
6.2 Escalation rate for transportation of imported gas 35.14%
6.3 Escalation rate for inland handling of imported gas 2.30%
7 Inflation rate to be applied to indexed capacity charge component 2.30%
8 Inflation rate to be applied to indexed energy charge 5.54%
component in cases of captive fuel source
SANOJ KUMAR JHA, Secy.
[ADVT.-III/4/Exty./328/18]
.
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.