Home India Central Electricity Regulatory Commission In pursuance of Clause 5 6 vi of Ministry of Power s Notific...
Date: 17-May-2024 Category: Extra Ordinary State: Union Government Country: India

In pursuance of Clause 5 6 vi of Ministry of Power s Notification on Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees

Issued by Central Electricity Regulatory Commission · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The notification issued by the Central Electricity Regulatory Commission (CERC) announces the annual escalation rates applicable for the period from April 1, 2024, to September 30, 2024, for the purpose of payment for power procured by distribution licensees. These rates are applicable as per the Power Purchase Agreements (PPAs) entered into under the guidelines issued by the Ministry of Power.

Key Changes

  • Escalation rate for domestic coal is 4.35%.
  • Escalation rate for domestic gas is (-)28.20%.
  • Escalation rate for imported coal is (-)10.69%.
  • Escalation rate for transportation of imported coal is 18.25%.
  • Escalation rate for inland handling of imported coal is 4.29%.
  • Escalation rates for inland transportation charges for coal (up to 2000 km and beyond) are 0.00%.
  • Escalation rate for inland transportation charges for gas is 46.94%.
  • Escalation rate for imported gas is 23.48%.
  • Escalation rate for transportation of imported gas is 18.25%.
  • Escalation rate for inland handling of imported gas is 4.29%.
  • Inflation rate to be applied to indexed capacity charge component is 4.29%.
  • Inflation rate to be applied to indexed energy charge component in cases of captive fuel source is 0.56%.

Impact Analysis

Distribution Licensees

  • Action Item: Update financial models and payment processes to reflect the new escalation rates.

Power Generators

  • Action Item: Review revenue projections and adjust operational strategies based on the revised escalation rates.

Consumers

  • Action Item: Monitor electricity tariffs and implement energy efficiency measures to mitigate potential cost increases.

Renewable Energy Sector

  • Action Item: Assess the impact on hybrid renewable projects and adjust bidding strategies accordingly.

Key Entities Referenced

Central Electricity Regulatory Commission (CERC): The regulatory body that issued the notification and is responsible for notifying the escalation rates. Ministry of Power: The ministry that issued the guidelines for tariff determination and competitive bidding processes for power procurement. Distribution Licensees: Entities responsible for procuring and distributing power to end consumers. Power Generators: Entities that generate power from various sources such as coal, gas, and renewable energy. Notification on “Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees”, dated 19.01.2005: The original notification providing guidelines for tariff determination through bidding. 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: Resolution outlining the guidelines for competitive bidding for round-the-clock power from renewable energy projects complemented with coal-based thermal power.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-18052024-254246 xxxGIDHxxx CG-DL-E-18052024-254246 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 362] नई दिल्ली, िुक्रवार, मई 17, 2024/विै ाख 27, 1946 No. 362] NEW DELHI, FRIDAY, MAY 17, 2024/VAISAKHA 27, 1946 ubZ fnYyh] 8 vçSy] 2024 Þforj.k vuqKfIr/kkfj;kas }kjk ÅtkZ dh mikfIRk ds fy, ckys h çfØ;k }kjk VSfjQ dk vo/kkj.k djus grs q ekxZfunZs'kß ls lacaf/kr fo|qr ea=ky; dh le;≤ ij ;Fkkla'kkfs/kr fnukad 19-01-2005 dh vf/klwpuk ds [kaM 5-6 ¼vi½ ds vuqlj.k es]a vkSj fnukda 03-11-2020 ds la'kk/s ku ds lkFk ifBr fnukad 22-07-2020 dh ^^dk;s yk vk/kkfjr FkeZy fo|qr ifj;kstukvkas ls fo|qr ds lkFk iwjd fxzM ls tqM+h uohdj.kh; Åtk Z fo|qr ifj;kts ukvks a ls pkSchl ?kaVs fo|qr dh mikfIr ds fy, VSfjQ vk/kkfjr çfrLi/kkZRed ckys h çfØ;k grs q ekxZfunZs'k^^ ls lacafèkr fo|qr e=a ky; ds ladYi ds ijS k 5-4 vkSj iSjk 5-5 ds vuqlj.k eas] dsUæh; fo|qr fofu;ed vk;kxs ¼dsfofovk½ lank; ds ç;kts u grs q fuEufyf[kr o`f) njkas dks vf/klwfpr djrk gSA 3087 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] % 1 ?kjsyw dk;s ys ds fy, o`f) nj 4.35% 2 ?kjsyw xSl ds fy, o`f) nj (-)28.20% 3 vk;kfrr dks;ys ij vk/kkfjr la;=a ksa ds fy, ÅtkZ çHkkj ds fofHkUu o`f)&;ksX; mi&la?kVdks a ds fy, o`f) njsa 3-1 vk;kfrr dks;ys ds fy, o`f) nj (-)10.69% 3-2 vk;kfrr dks;ys ds ifjogu ds fy, o`f) nj 18.25% 3-3 vk;kfrr dks;ys ds varnsZ'kh; mBkbZ&èkjkbZ ds fy, o`f) nj 4.29% 4 dk;s ys ds fy, varnsZ'kh; ifjogu çHkkjks a ds fy, o`f) njsa 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 fdykes hVj dh nwjh rd 0.00% 4-5 2000 fdykes hVj dh nwjh rd 0.00% 4-6 2000 fdykes hVj dh nwjh ls vkxs 0.00% 5 xSl ds fy, varnsZ'kh; ifjogu çHkkjks a ds fy, o`f) nj 46.94% 6 vk;kfrr xSl ij vk/kkfjr la;a=kas ds fy, ÅtkZ çHkkj ds fofHkUu o`f)&;ksX; mi&la?kVdks a ds fy, o`f) njsa 6-1 vk;kfrr xSl ds fy, o`f) nj 23.48% 6-2 vk;kfrr xSl ds ifjogu ds fy, o`f) nj 18.25% 6-3 vk;kfrr xSl ds varnsZ'kh; mBkbZ&èkjkbZ ds fy, o`f) nj 4.29% 7 lwpdkad {kerk çHkkj la?kVd ds fy, ykxw dh tkus okyh eqæk LQhfr nj 4.29% 8 dSfIVo bZa/ku lzkrs dh n'kk eaass lpw dkad {kerk çHkkj la?kVd ds fy, ykxw dh 0.56% tkus okyh eqæk LQhfr nj gjizhr Çlg izqFkh] lfpo [जवज्ञापन-III/4/असा./132/2024-25] CENTRAL ELECTRICITY REGULATORY COMMISSION NOTIFICATION New Delhi, the 8th April, 2024 No. Eco-1/2024-CERC.— In pursuance of Clause 5.6 (vi) of Ministry of Power’s 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 notifies the following escalation rates for the purpose of payment.[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 Annual Escalation Rates applicable for the period from 1.4.2024 to 30.9.2024 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. Description Annual Escalation Rates for No. Payment (%) 1 Escalation rate for domestic coal 4.35% 2 Escalation rate for domestic gas (-)28.20% 3 Escalation rates for different escalable sub-components of energy charge for plants based on imported coal 3.1 Escalation rate for imported coal (-)10.69% 3.2 Escalation rate for transportation of imported coal 18.25% 3.3 Escalation rate for inland handling of imported coal 4.29% 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 46.94% 6 Escalation rates for different escalable sub-components of energy charge for plants based on imported gas 6.1 Escalation rate for imported gas 23.48% 6.2 Escalation rate for transportation of imported gas 18.25% 6.3 Escalation rate for inland handling of imported gas 4.29% 7 Inflation rate to be applied to indexed capacity charge component 4.29% 8 Inflation rate to be applied to indexed energy charge 0.56% component in cases of captive fuel source HARPREET SINGH PRUTHI, Secy. [ADVT.-III/4/Exty./132/2024-25] 5Uploaded 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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