The notification issued by the Central Electricity Regulatory Commission (CERC) announces the escalation rates for various components of energy and transportation costs used in tariff determination for power procurement by distribution licensees. These rates are applicable for the period from October 1, 2023, to March 31, 2024.
Key Changes
Escalation rate for domestic coal is 4.57%.
Escalation rate for domestic gas is 10.83%.
Escalation rate for imported coal is (-)63.54%.
Escalation rate for transportation of imported coal is (-)22.56%.
Escalation rate for inland handling of imported coal is (-)0.38%.
Escalation rates for inland transportation charges for coal up to 2000 km and beyond is 0.00%.
Escalation rate for inland transportation charges for gas is 61.34%.
Escalation rate for imported gas is (-)118.68%.
Escalation rate for transportation of imported gas is (-)22.56%.
Escalation rate for inland handling of imported gas is (-)0.38%.
Inflation rate to be applied to indexed capacity charge component is (-)0.38%.
Inflation rate to be applied to indexed energy charge component in cases of captive fuel source is (-)6.67%.
Impact Analysis
Distribution Licensees
Action Item: Update financial models and tariff structures to reflect the new escalation rates. Review existing PPAs to ensure compliance.
Power Generating Companies (Coal-Based)
Action Item: Re-evaluate fuel sourcing strategies considering the decreased cost of imported coal. Renegotiate contracts if possible to maximize benefits.
Power Generating Companies (Gas-Based)
Action Item: Re-evaluate fuel sourcing strategies considering the decreased cost of imported gas. Renegotiate contracts if possible to maximize benefits.
Renewable Energy Projects Complemented with Coal-Based Thermal Power Projects
Action Item: Recalculate tariff structures to reflect the new escalation rates for both renewable and thermal components. Ensure compliance with the Ministry of Power guidelines.
Consumers
Action Item: Monitor tariff adjustments by distribution licensees to understand the impact on consumer electricity bills. Advocate for fair and transparent tariff adjustments.
Key Entities Referenced
Central Electricity Regulatory Commission (CERC): The statutory body responsible for regulating the electricity sector in India, including tariff determination and licensing.
Ministry of Power: The government ministry responsible for the development of the power sector in India, including policy formulation and guidelines.
Distribution Licensees: Entities licensed to distribute electricity to consumers.
Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees: Ministry of Power Notification dated 19.01.2005, as amended, outlining the process for tariff determination through bidding.
Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round-The-Clock Power from Grid Connected Renewable Energy Power Projects, complemented with Power from Coal Based Thermal Power Projects: Ministry of Power’s Resolution dated 22.07.2020 read with amendment dated 03.11.2020, outlining the process for tariff-based competitive bidding for round-the-clock power.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-18112023-250120
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CG-DL-E-18112023-250120
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 761] नई दिल्ली, िुक्रवार, नवम्ब र 17, 2023/कार्ततक 26, 1945
No. 761] NEW DELHI, FRIDAY, NOVEMBER 17, 2023/KARTIKA 26, 1945
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1 ?kjys w dks;ys ds fy, o`f) nj 4.57%
2 ?kjys w xSl ds fy, o`f) nj 10.83%
3 vk;kfrr dks;ys ij vk/kkfjr la;a=ks a ds fy, ÅtkZ çHkkj ds fofHkUu o`f)&;ksX;
mi&la?kVdks a ds fy, o`f) njas
7190 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
3-1 vk;kfrr dks;ys ds fy, o`f) nj (-)63.54%
3-2 vk;kfrr dks;ys ds ifjogu ds fy, o`f) nj (-)22.56%
3-3 vk;kfrr dks;ys ds varns'Z kh; mBkbZ&èkjkbZ ds fy, o`f) nj (-)0.38%
4 dk;s ys ds fy, varnZs'kh; ifjogu çHkkjks a ds fy, o`f) njas
4-1 100 fdyksehVj dh nwjh rd 0.00%
4-2 125 fdyksehVj dh nwjh rd 0.00%
4-3 500 fdyksehVj dh nwjh rd 0.00%
4-4 1000 fdyksehVj dh nwjh rd 0.00%
4-5 2000 fdyksehVj dh nwjh rd 0.00%
4-6 2000 fdyksehVj dh nwjh ls vkxs 0.00%
5 xSl ds fy, varnsZ'kh; ifjogu çHkkjks a ds fy, o`f) nj 61.34%
6 vk;kfrr xSl ij vk/kkfjr la;a=ks a ds fy, ÅtkZ çHkkj ds fofHkUu o`f)&;ksX;
mi&la?kVdks a ds fy, o`f) njas
6-1 vk;kfrr xSl ds fy, o`f) nj (-)118.68%
6-2 vk;kfrr xSl ds ifjogu ds fy, o`f) nj (-)22.56%
6-3 vk;kfrr xSl ds varnZs'kh; mBkbZ&èkjkbZ ds fy, o`f) nj (-)0.38%
7 lwpdkad {kerk çHkkj la?kVd ds fy, ykxw dh tku s okyh eæq k LQhfr nj (-)0.38%
8 dSfIVo bZa/ku lzksr dh n'kk esas a lwpdkad {kerk çHkkj la?kVd ds fy, ykxw dh tku s (-)6.67%
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[जवज्ञापन-III/4/असा./543/2023-24]
CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 20th October, 2023
No. Eco-2/2023-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, and in pursuance of paragraph 5.4 and paragraph 5.5 of the Ministry of
Power’s Resolution on “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round- The-
Clock Power from Grid Connected Renewable Energy Power Projects, complemented with Power from Coal Based
Thermal Power Projects” dated 22.07.2020 read with amendment dated 03.11.2020, the Central Electricity Regulatory
Commission (CERC) notifies the following escalation rates for the purpose of payment.
Annual Escalation Rates applicable for the period from 01.10.2023 to 31.03.2024 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 Annual Escalation Rates
for Payment
1 Escalation rate for domestic coal 4.57%
2 Escalation rate for domestic gas 10.83%
3 Escalation rates for different escalable sub-components
of energy charge for plants based on imported coal[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
3.1 Escalation rate for imported coal (-)63.54%
3.2 Escalation rate for transportation of imported coal (-)22.56%
3.3 Escalation rate for inland handling of imported coal (-)0.38%
4 Escalation rates for inland transportation charges for coal
4.1 Up to 100 Km distance 0.00%
4.2 Up to 125 Km distance 0.00%
4.3 Up to 500 Km distance 0.00%
4.4 Up to 1000 Km distance 0.00%
4.5 Up to 2000 Km distance 0.00%
4.6 Beyond 2000 Km distance 0.00%
5 Escalation rate for inland transportation charges for gas 61.34%
6 Escalation rates for different escalable sub-components
of energy charge for plants based on imported gas
6.1 Escalation rate for imported gas (-)118.68%
6.2 Escalation rate for transportation of imported gas (-)22.56%
6.3 Escalation rate for inland handling of imported gas (-)0.38%
7 Inflation rate to be applied to indexed capacity charge component (-)0.38%
8 Inflation rate to be applied to indexed energy charge (-)6.67%
component in cases of captive fuel source
HARPREET SINGH PRUTHI, Secy.
[ADVT.-III/4/Exty./543/2023-24]
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.