Date: 2026-05-18Category: Extra OrdinaryState: Union GovernmentCountry: 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, dated 19.01.2005, as amended from time to time, and in pursuance of paragraph
**Executive Summary**
The Central Electricity Regulatory Commission (CERC) has notified the annual escalation rates for the procurement of power by distribution licensees, effective from April 1, 2026, to September 30, 2026. These rates are issued in accordance with Ministry of Power guidelines for tariff-based competitive bidding processes, including round-the-clock power projects. The notification provides specific percentages to be used for payment purposes involving domestic and imported fuel sources.
**Key Points / Main Content**
**Domestic Fuel Escalation Rates**
* **Domestic Coal:** The escalation rate is set at 0.48%.
* **Domestic Gas:** The escalation rate is set at 8.11%.
**Imported Coal Components (Energy Charge)**
* **Imported Coal:** An escalation rate of 6.97% applies.
* **Transportation of Imported Coal:** A negative escalation (reduction) of -19.86% is mandated.
* **Inland Handling of Imported Coal:** The escalation rate is 2.99%.
**Imported Gas Components (Energy Charge)**
* **Imported Gas:** A significant negative escalation of -25.15% is applied.
* **Transportation of Imported Gas:** A negative escalation of -19.86% applies.
* **Inland Handling of Imported Gas:** The escalation rate is 2.99%.
**Inland Transportation Charges**
* **Coal Transportation:** All distance categories (from up to 100 km to beyond 2000 km) have an escalation rate of 0.00%.
* **Gas Transportation:** All zones (Zone-1 to Zone-3) have an escalation rate of 0.00%.
**Inflation Rates for Capacity and Energy Charges**
* **Indexed Capacity Charge:** An inflation rate of 2.99% is to be applied to the indexed capacity charge component.
* **Captive Fuel Source:** For cases involving captive fuel, an inflation rate of 0.84% applies to the indexed energy charge component.
**Impact Analysis**
**Distribution Licensees (DISCOMs)**
**Impact**
These entities are affected by the specific rates that dictate the cost of power procurement from generating companies for the period of April to September 2026. The rates for imported gas and transportation show significant decreases, potentially lowering procurement costs for those specific energy sources.
**Action Required**
Licensees must apply these notified escalation rates when calculating payments due to power generators under existing Power Purchase Agreements (PPAs).
**Power Generating Companies (Gencos)**
**Impact**
Generators using domestic gas will see an upward adjustment in payments (8.11%), while those relying on imported gas or imported coal transportation will see a downward adjustment in their escalable energy charge components.
**Action Required**
Generators must ensure their invoices for energy and capacity charges for the specified period reflect these official CERC escalation and inflation rates.
Key Entities Referenced
Central Electricity Regulatory Commission (CERC): The primary regulatory body issuing the notification to specify escalation rates for power procurement payments.
Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees: The policy framework dated 19.01.2005 under which the tariff escalation rates are determined for distribution licensees.
Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round-The-Clock Power: A policy resolution governing the procurement of power from grid-connected renewable energy projects complemented by coal-based thermal power.
Ministry of Power: The central ministry whose notifications and resolutions form the legal basis for the CERC's escalation rate determination.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-18052026-272674
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CG-DL-E-18052026-272674
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 319] नई दिल्ली, सोमवार, मई 18, 2026/विै ाख 28, 1948
No. 319] NEW DELHI, MONDAY, MAY 18, 2026/VAISAKHA 28, 1948
अजधसचू ना
नई दिल्ली, 16 vçSy, 2026
फा. स.ं .—Þforj.k vuqKfIr/kkfj;ks a }kjk ÅtkZ dh mikfIRk ds fy, cksyh
çfØ;k }kjk VSfjQ dk vo/kkj.k djus grs q ekxZfunZs'kß ls lacaf/kr fo|qr e=a ky; dh le;≤ ij
;Fkkla'kkfs/kr fnukda 19-01-2005 dh vf/klwpuk ds [kaM 5-6 ¼vi½ ds vuqlj.k eas] vkSj fnukda 03-11-2020 ds
la'kk/s ku ds lkFk ifBr fnukda 22-07-2020 dh ^^dks;yk vk/kkfjr FkeZy fo|qr ifj;kts ukvkas ls fo|qr ds lkFk
iwjd fxzM ls tqM+h uohdj.kh; ÅtkZ fo|rq ifj;kstukvkas ls pkSchl ?kaVs fo|qr dh mikfIr ds fy, VSfjQ
vk/kkfjr çfrLi/kkZRed cksyh çfØ;k grs q ekxZfunZs'k^^ ls lacafèkr fo|qr e=a ky; ds ladYi ds iSjk 5-4 vkSj iSjk
5-5 ds vuqlj.k eas] dsUæh; fo|qr fofu;ed vk;kxs ¼dsfofovk½ lank; ds ç;kstu grs q fuEufyf[kr o`f) njkas
dk s vf/klwfpr djrk gSA
3550 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
1 ?kjsyw dk;s ys ds fy, o`f) nj 0.48%
2 ?kjsyw xSl ds fy, o`f) nj 8.11%
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 6.97%
3-2 vk;kfrr dks;ys ds ifjogu ds fy, o`f) nj (-)19.86%
3-3 vk;kfrr dks;ys ds varnsZ'kh; mBkbZ&èkjkbZ ds fy, o`f) nj 2.99%
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
5-1 tkus &1¼300 fdyksehVj rd½ 0.00%
5-2 tkus &2¼300&1200 fdyksehVj½ 0.00%
5-3 tkus &3¼1200 fdykes hVj ds Åij½ 0.00%
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 (-)25.15%
6-2 vk;kfrr xSl ds ifjogu ds fy, o`f) nj (-)19.86%
6-3 vk;kfrr xSl ds varnsZ'kh; mBkbZ&èkjkbZ ds fy, o`f) nj 2.99%
7 lwpdkad {kerk çHkkj la?kVd ds fy, ykxw dh tkus okyh eqæk LQhfr 2.99%
nj
8 dSfIVo bZa/ku lzkrs dh n'kk eassa lwpdkad {kerk çHkkj la?kVd ds fy, ykxw 0.84%
dh tkus okyh eqæk LQhfr nj
gjizhr flag çqFkh] lfpo
[जवज्ञापन-III/4/असा./78/2026-27][भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 16th April, 2026
F. No. Eco-1/2026-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.
Annual Escalation Rates applicable for the period from 01.04.2026 to 30.09.2026 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 0.48%
2 Escalation rate for domestic gas 8.11%
3 Escalation rates for different escalable sub-components
of energy charge for plants based on imported coal
3.1 Escalation rate for imported coal 6.97%
3.2 Escalation rate for transportation of imported coal (-)19.86%
3.3 Escalation rate for inland handling of imported coal 2.99%
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
5.1 Zone-1 (Up to 300 Km) 0.00%
5.2 Zone-2 (300-1200 Km) 0.00%
5.3 Zone-3 (above 1200 Km) 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 (-)25.15%
6.2 Escalation rate for transportation of imported gas (-)19.86%
6.3 Escalation rate for inland handling of imported gas 2.99%
7 Inflation rate to be applied to indexed capacity charge component 2.99%
8 Inflation rate to be applied to indexed energy charge 0.84%
component in cases of captive fuel source
HARPREET SINGH PRUTHI, Secy.
[ADVT.-III/4/Exty./78/2026-27]
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.