The notification issued by the Central Electricity Regulatory Commission (CERC) announces the escalation rates applicable for January 2024, which will be used for payments related to power procurement by distribution licensees. These rates pertain to imported coal, its transportation, and inland handling.
Key Changes
The escalation rate for imported coal is set at -2.08%.
The escalation rate for the transportation of imported coal is set at -10.33%.
The escalation rate for the inland handling of imported coal is set at 0.53%.
These rates are applicable for payments made under Power Purchase Agreements (PPAs) as per the guidelines issued by the Ministry of Power (MOP).
Impact Analysis
Distribution Licensees
Action Item: Distribution licensees should update their payment calculations for January 2024 to reflect these revised escalation rates as per their PPAs.
Thermal Power Plants
Action Item: Thermal power plants should review their contracts and financial models to assess the impact of these escalation rates on their profitability.
Consumers
Action Item: Monitor tariff adjustments by distribution licensees to understand the direct impact on consumer electricity bills.
Key Entities Referenced
Central Electricity Regulatory Commission (CERC): The regulatory body that issued the notification and determines the escalation rates for power procurement.
Ministry of Power (MOP): The government ministry that issued the original guidelines for tariff determination and long-term power procurement, and communicated with CERC regarding the escalation rates.
Distribution Licensees: Entities responsible for procuring and distributing electricity to consumers.
Thermal Power Stations: Power plants that generate electricity using thermal energy, particularly those that rely on imported coal.
SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy: A policy related to the allocation of coal in India.
Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees: Guidelines issued by the Ministry of Power (MOP) on 19.01.2005, as amended from time to time, regarding the determination of tariff by bidding process for procurement of power by distribution licensees
Guidelines for long term Procurement of Electricity from Thermal Power Stations set up on Design, Build, Finance, Own and Operate (DBFOO) basis: Guidelines for long term Procurement of Electricity from Thermal Power Stations set up on Design, Build, Finance, Own and Operate (DBFOO) basis and sourcing fuel as provided under Model Bidding Documents including allocation of coal under B (I), B(III) and B(IV) of SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy” dated 6.03.2019
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
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असाधारण
EXTRAORDINARY
भाग III—खण्ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 85] नई दिल्ली, बुधिार, फरिरी 7, 2024/माघ 18, 1945
No. 85] NEW DELHI, WEDNESDAY, FEBRUARY 7, 2024/MAGHA 18, 1945
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1- vk;kfrr dks;ys ds fy, o`f) nj (-)2.08%
2- vk;kfrr dks;ys ds ifjogu ds fy, o`f) nj (-)10.33%
3- vk;kfrr dks;ys dh varnZ's kh; mBkbZ&/kjkbZ ds fy, o`f) nj 0.53%
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[जिज्ञापन-III/4/असा./738/2023-24]
853 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 28th January, 2024
No. Eco-M01/2024-CERC.—In pursuance of Clause 5.6 (vi) of the Ministry of Power (MOP) 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, MOP communication to the Central Electricity Regulatory
Commission (CERC) dated 13.04.2022, and MOP Resolution dated 11.07.2022 on an amendment to the “Guidelines
for long term Procurement of Electricity from Thermal Power Stations set up on Design, Build, Finance, Own and
Operate (DBFOO) basis and sourcing fuel as provided under Model Bidding Documents including allocation of coal
under B (I), B(III) and B(IV) of SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in
India) Policy” dated 6.03.2019, the CERC notifies the following escalation rates for the purpose of payment.
Monthly Escalation Rates applicable for January 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 Monthly Escalation Rates for Payment
1 Escalation rate for imported coal (-)2.08%
2 Escalation rate for transportation of imported coal (-)10.33%
3 Escalation rate for inland handling of imported coal 0.53%
HARPREET SINGH PRUTHI, Secy.
[ADVT.-III/4/Exty./738/2023-24]
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.