Home India Central Electricity Regulatory Commission In pursuance of Clause 5 6 vi of the Ministry of Power MOP N...
Date: 20-Feb-2025 Category: Extra Ordinary State: Union Government Country: India

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

Issued by Central Electricity Regulatory Commission · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • The Central Electricity Regulatory Commission (CERC) has issued a notification regarding the monthly escalation rates applicable for January 2025 for payments related to power procurement by distribution licensees.
  • These rates are applicable as per the Power Purchase Agreements (PPAs) entered into under the guidelines for tariff determination through bidding process.

Key Changes

  • The notification specifies the monthly escalation rates for January 2025 for imported coal, transportation of imported coal and inland handling of imported coal.
  • The escalation rate for imported coal is negative 3.39%.
  • The escalation rate for transportation of imported coal is negative 4.26%.
  • The escalation rate for inland handling of imported coal is 1.12%.

Impact Analysis

Distribution Licensees

  • Action Item: Distribution licensees should update their financial models to reflect these new escalation rates for January 2025 and adjust payments to power generators accordingly.

Power Generators

  • Action Item: Power generators should review their PPAs and invoices to ensure accurate application of the new escalation rates.

Consumers

  • Action Item: Regulators should monitor the impact of these escalation rates on electricity tariffs and ensure that any cost savings are passed on to consumers.

Coal Importers and Transporters

  • Action Item: Coal importers and transporters should review their contracts and pricing strategies to mitigate the impact of the negative escalation rates.

Key Entities Referenced

Central Electricity Regulatory Commission (CERC): The regulatory body responsible for notifying the monthly escalation rates. Ministry of Power (MOP): The ministry that issued the initial guidelines for tariff determination and long-term power procurement. Distribution Licensees: Entities responsible for procuring and distributing electricity to consumers. Thermal Power Stations: Power plants that generate electricity using thermal energy, often fueled by coal. SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy: A policy related to coal allocation in India. Power Purchase Agreement (PPA): An agreement between a power generator and a distribution licensee for the sale and purchase of electricity.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 xxxGIDHxxx सी.जी.-डी.एल.-अ.-20022025-261193 xxxGIDExxx CG-DL-E-20022025-261193 असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 135] नई दिल्ली, बृहस्ट्प जतिार, फरिरी 20, 2025/फाल्ग नु 1, 1946 No. 135] NEW DELHI, THURSDAY, FEBRUARY 20, 2025/PHALGUNA 1, 1946 dsUæh; fo|qr fofu;ked vk;ksx vf/klwpuk ubZ fnYyh] 30 tuojh] 2025 la- bZdks&,e-1@2025&dsfofovk.—Þforj.k vuKq fIr/kkfj;ks a }kjk ÅtkZ dh mikfIRk ds fy, cksyh çfØ;k }kjk VSfjQ dk vo/kkj.k dju s gsrq ekxZn'kZd fl)karß ls lacaf/kr fo|qr e=a ky; dh le;≤ ij ;Fkkla'kksf/kr rkjh[k 19-01-2005 dh vf/klwpuk ds [kaM 5-6 ¼vi½ ds vuqlj.k eas] dsUnzh; fo|qr fofu;ked vk;ksx dks fo|qr e=a ky; ds i= fnukad 13-04-2022 vkSj **'kfDr ¼Hkkjr eas dks;yk] ikjn'khZ :Ik eas vkcafVr dju s oky s vkSj gkusZflax ds fy, ;kstuk½ uhfr** fnukad 06-03-2019 ds ch¼I½] ch¼III½ vkSj ch¼IV½ ds v/khu dks;ys ds vkcaVu lfgr ekWMy cksyh nLrkostks a ds v/khu ;FkkçnÙk fMtkbu] fuekZ.k] foÙk] LokfeRo vkSj çpkyu ¼Mhch,Qvksvks½ vk/kkj vkSj lzksr bZa/ku ij LFkkfir FkeZy ikoj LVs'kuks a ls fo|qr dh nh?kZdkfyd mikfIr ds fy, ekxZfunsZ'k** ds la'kks/ku ij fnukad 11-07-2022 ds çLrko ds vuqlj.k eas] dsfofovk Hkqxrku ds iz;kstu ds fy, fuEufyf[kr o`f) njks a dks vf/klwfpr djrk gSA mijksä ekxZfunsZ'kksa ds varxZr gq, ÅtkZ Ø; djkj ds vuqlkj forj.k vuqKfIr/kkfj;ksa }kjk ÅtkZ dh mikfIRk ds fy, lank; ds ç;kstu ds fy, tuojh 2025 gsrq ykxw ekfld o`f) njsa% Ø-la- fooj.k Hkqxrku gsrq ekfld o`f) nj 1- vk;kfrr dks;y s ds fy, o`f) nj (-)3.39% 2- vk;kfrr dks;y s ds ifjogu ds fy, o`f) nj (-)4.26% 3- vk;kfrr dks;y s dh varnZs'kh; mBkbZ&/kjkbZ ds fy, o`f) nj 1.12% gjizhr flag çqFkh] lfpo [जिज्ञापन-III/4/असा./992/2024-25] 1300 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] CENTRAL ELECTRICITY REGULATORY COMMISSION NOTIFICATION New Delhi, the 30th January, 2025 No. Eco-M1/2025-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 2025 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: Sl. Description Monthly Escalation No. Rates for Payment 1 Escalation rate for imported coal (-)3.39% 2 Escalation rate for transportation of imported coal (-)4.26% 3 Escalation rate for inland handling of imported coal 1.12% HARPREET SINGH PRUTHI, Secy. [ADVT.-III/4/Exty./992/2024-25] 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.

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