Executive Summary:
This notification from the Central Electricity Regulatory Commission (CERC) announces the annual escalation rates for power procurement by distribution licensees, effective from October 1, 2017, to March 31, 2018. These rates are in accordance with the Ministry of Power's guidelines for tariff determination via bidding processes. The purpose is to provide clarity on the escalation rates applicable for various fuel sources and transportation charges.
Key Points / Main Content:
* **Escalation Rates for Domestic Fuels:**
* Domestic coal: 0.00
* Domestic gas: 24.55
* **Escalation Rates for Imported Coal-Based Plants:**
* Imported coal: 4.36
* Transportation of imported coal: 3.65
* Inland handling of imported coal: 0.39
* **Escalation Rates for Inland Coal Transportation:**
* Up to 125 km: 0.00
* Up to 500 km: 0.45
* Up to 1000 km: 0.00
* Up to 2000 km: 3.74
* Beyond 2000 km: 4.71
* **Escalation Rates for Inland Gas Transportation:**
* Inland transportation charges for gas: 0.00
* **Escalation Rates for Imported Gas-Based Plants:**
* Imported gas: 22.84
* Transportation of imported gas: 3.65
* Inland handling of imported gas: 0.39
* **Inflation Rates for Indexed Components:**
* Indexed capacity charge component: 0.39
* Indexed energy charge component (captive fuel source): 4.37
Impact Analysis:
* **Distribution Licensees:**
* Impact: These rates will directly influence the cost of power procurement and, consequently, tariffs.
* Action Required: Incorporate the notified escalation rates into payment calculations for power purchase agreements.
* **Power Producers:**
* Impact: Affects revenue from power generation, particularly for those using imported coal or gas.
* Action Required: Understand the updated escalation rates to accurately forecast revenue and manage operational costs.
Key Entities Referenced
Central Electricity Regulatory Commission: Regulatory body responsible for notifying escalation rates for power procurement.
Ministry of Power: Government ministry that issued the notification regarding tariff determination.
New Delhi: Location where the notification was issued.
01.10.2017: Start date of the period for which the annual escalation rates are applicable.
31.03.2018: End date of the period for which the annual escalation rates are applicable.
Power Purchase Agreement: Agreement mentioned as the basis for applying the notified escalation rates.
Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees, dated 19.01.2005: Policy document issued by the Ministry of Power.
SANOJ KUMAR JHA: Secretary who signed the notification
REGD. NO. D. L.-33004/99
EXTRAORDINARY
III—
PART III—Section 4
PUBLISHED BY AUTHORITY
409]
No. 409] NEW DELHI, FRIDAY, OCTOBER 13, 2017/ASVINA 21, 1939
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CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 10th October, 2017
No. Eco-1/2017-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.
1. Annual Escalation Rates applicable for the period from 01.10.2017 to 31.03.2018 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 (-)24.55%
3 Escalation rates for different escalable sub-components
of energy charge for plants based on imported coal
3.1 Escalation rate for imported coal (-)4.36%
3.2 Escalation rate for transportation of imported coal 3.65%
3.3 Escalation rate for inland handling of imported coal 0.39%
4 Escalation rates for inland transportation charges for coal
4.1 Upto 125 Km distance 0.00%
4.2 Upto 500 Km distance 0.45%
4.3 Upto 1000 Km distance 0.00%
4.4 Upto 2000 Km distance (-)3.74%
4.5 Beyond 2000 Km distance
(-)4.71%
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 22.84%
6.2 Escalation rate for transportation of imported gas 3.65%
6.3 Escalation rate for inland handling of imported gas 0.39%
*ProvisionalIII 3
7 Inflation rate to be applied to indexed capacity charge component. 0.39%
8 Inflation rate to be applied to indexed energy charge 4.37%
component in cases of captive fuel source
SANOJ KUMAR JHA, Secy.
ADVT.III/4/Exty./278/17]
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.