Date: 2025-11-03Category: 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
**Executive Summary**
This notification by the Central Electricity Regulatory Commission (CERC), issued on October 22, 2025, announces the annual escalation rates applicable from October 1, 2025, to March 31, 2026, for the purpose of payment for power procured by Distribution Licensees as per the Power Purchase Agreements. These rates are in accordance with the Ministry of Power's guidelines for tariff determination through bidding and guidelines for procurement of round-the-clock power from renewable energy projects complemented with coal-based thermal power projects.
**Key Points / Main Content**
* **Applicability:** These escalation rates apply to payments for power procured by Distribution Licensees, as per the Power Purchase Agreements.
* **Period of Applicability:** The rates are valid for the period from October 1, 2025, to March 31, 2026.
* **Escalation Rates:**
* **Domestic Coal:** 1.46%
* **Domestic Gas:** 6.86%
* **Imported Coal-Based Plants (Energy Charge Sub-Components):**
* Imported Coal: -27.58%
* Transportation of Imported Coal: -22.01%
* Inland Handling of Imported Coal: -0.90%
* **Inland Transportation Charges for Coal:**
* Up to 100 km: 0.00%
* Up to 125 km: 0.00%
* Up to 500 km: 0.00%
* Up to 1000 km: 0.00%
* Up to 2000 km: 0.00%
* Beyond 2000 km: 0.00%
* **Inland Transportation Charges for Gas:**
* Zone-1 (Up to 300 km): 0.00%
* Zone-2 (300-1200 km): 0.00%
* Zone-3 (Above 1200 km): 0.00%
* **Imported Gas-Based Plants (Energy Charge Sub-Components):**
* Imported Gas: -24.81%
* Transportation of Imported Gas: -22.01%
* Inland Handling of Imported Gas: -0.90%
* **Indexed Capacity Charge Component Inflation:** -0.90%
* **Indexed Energy Charge Component Inflation (Captive Fuel Source):** -0.97%
**Impact Analysis**
**Distribution Licensees**
* **Impact:** The escalation rates will directly affect the cost of power procurement for distribution licensees. This can potentially impact electricity tariffs for consumers.
* **Action Required:** Distribution Licensees must incorporate these revised escalation rates in their financial planning and power purchase agreements (PPAs) for the specified period.
Key Entities Referenced
Central Electricity Regulatory Commission: The primary regulatory body issuing the notification regarding escalation rates for power procurement.
"Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees": Referenced Ministry of Power guidelines that the current notification is in pursuance of.
"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": Referenced Ministry of Power resolution that the current notification is also in pursuance of.
Distribution Licensees: Entities to whom the annual escalation rates for power procurement apply.
Power Purchase Agreement: The agreement under which power is procured by Distribution Licensees, subject to the specified guidelines.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-07112025-267448
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 708] नई दिल्ली, सोमवार, नवम्ब र 3, 2025/ कार्तकि 12, 1947
No. 708] NEW DELHI, MONDAY, NOVEMBER 3, 2025/ KARTIKA 12, 1947
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7311 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
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[जवज्ञापन-III/4/असा./443/2025-26][भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 22nd October, 2025
F. No. Eco-2/2025-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 1.10.2025 to 31.3.2026 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 1.46%
2 Escalation rate for domestic gas 6.86%
3 Escalation rates for different escalable sub-components
of energy charge for plants based on imported coal
3.1 Escalation rate for imported coal (-)27.58%
3.2 Escalation rate for transportation of imported coal (-)22.01%
3.3 Escalation rate for inland handling of imported coal (-)0.90%
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%
4.6 Up to 2000 Km distance 0.00%
4.7 Beyond 2000 Km distance 0.00%
5 Escalation rate for inland transportation charges for gas
5.1 Zone-1 (Up to 300 Km) 10.20%
5.2 Zone-2 (300-1200 Km) 2.73%
5.3 Zone-3 (above 1200 Km) 13.53%
6 Escalation rates for different escalable sub-components
of energy charge for plants based on imported gas
6.1 Escalation rate for imported gas (-)24.81%
6.2 Escalation rate for transportation of imported gas (-)22.01%
6.3 Escalation rate for inland handling of imported gas (-)0.90%
7 Inflation rate to be applied to indexed capacity charge component (-)0.90%
8 Inflation rate to be applied to indexed energy charge (-)0.97%
component in cases of captive fuel source
HARPREET SINGH PRUTHI, Secy.
[ADVT.-III/4/Exty./443/2025-26]
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.