Home India Central Electricity Regulatory Commission In pursuance of Clause 5 6 vi of Ministry of Power Notificat...
Date: 2016-04-29 Category: Extra Ordinary State: Union Government Country: India

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

Issued by Central Electricity Regulatory Commission · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This notification from the Central Electricity Regulatory Commission (CERC) outlines the annual escalation rates for payment to distribution licensees for power procurement. These rates are effective for the period between April 1, 2016, and September 30, 2016. This notification follows the Ministry of Power's guidelines regarding tariff determination through bidding processes. Key Points / Main Content: * **Escalation Rates for Power Procurement:** * Effective period: April 1, 2016 - September 30, 2016. * Applicable to Power Purchase Agreements entered under Ministry of Power guidelines. * **Specific Escalation Rates:** * Domestic Coal: 0.00 * Domestic Gas: 18.19 * Imported Coal-Based Plants: * Imported Coal: 26.51 * Transportation of Imported Coal: 75.16 * Inland Handling of Imported Coal: 4.09 * Inland Transportation Charges for Coal: * Upto 125 Km distance: 6.12 * Upto 500 Km distance: 6.13 * Upto 1000 Km distance: 6.13 * Upto 2000 Km distance: 6.14 * Beyond 2000 Km distance: 6.14 * Inland Transportation Charges for Gas: 0.00 * Imported Gas-Based Plants: * Imported Gas: 20.36 * Transportation of Imported Gas: 75.16 * Inland Handling of Imported Gas: 4.09 * **Inflation Rates:** * Indexed Capacity Charge Component: 4.09 * Indexed Energy Charge Component (Captive Fuel Source): 2.87 Impact Analysis: Distribution Licensees * Impact: Determines the rates at which they will be compensated for power procurement during the specified period. * Action Required: Apply the notified escalation rates in payment calculations for power procurement from April 1, 2016, to September 30, 2016. Power Producers * Impact: Affects the revenue received based on the escalation rates applicable to their fuel source and transportation methods. * Action Required: Understand the applicable escalation rates for their specific energy source (coal or gas, domestic or imported) and factor them into financial planning and billing.

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 electricity sector in India, which issued the notification on tariff guidelines. New Delhi: Location where the notification was issued. Power Purchase Agreement: An agreement between a power generator and a distribution company for the sale and purchase of electricity. domestic coal: Coal that is produced within India. domestic gas: Natural gas that is produced within India. imported coal: Coal that is imported from outside India. imported gas: Natural gas that is imported from outside India.
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Annual Escalation Rates applicable for the period between 01.04.2016 and 30.09.2016 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 -18.19% 3 Escalation rates for different escalable sub-components of energy charge for plants based on imported coal 3.1 Escalation rate for imported coal -26.51% 3.2 Escalation rate for transportation of imported coal -75.16% 3.3 Escalation rate for inland handling of imported coal 4.09% 4 Escalation rates for inland transportation charges for coal 4.1 Upto 125 Km distance 6.12% 4.2 Upto 500 Km distance 6.13% 4.3 Upto 1000 Km distance 6.13% 4.4 Upto 2000 Km distance 6.14% 4.5 Beyond 2000 Km distance 6.14% 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 gas 6.1 Escalation rate for imported gas -20.36% 6.2 Escalation rate for transportation of imported gas -75.16% 6.3 Escalation rate for inland handling of imported gas 4.09% 7 Inflation rate to be applied to indexed capacity charge component. 4.09% 8 Inflation rate to be applied to indexed energy charge -2.87% component in cases of captive fuel source SHUBHA SARMA, Secy. [ADVT.-III/4/150(42)] 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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