Date: 2025-10-16Category: Extra OrdinaryState: Union GovernmentCountry: 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 of Pow
**Executive Summary**
This notification, issued by the Central Electricity Regulatory Commission (CERC) on September 30, 2025, announces the monthly escalation rates applicable for September 2025 for power procurement by distribution licensees. These rates apply to payments under Power Purchase Agreements (PPAs) as per the "Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees." This follows up on the Ministry of Power’s (MOP) notifications dated January 19, 2005, April 13, 2022, and July 11, 2022.
**Key Points / Main Content**
* **Subject:** Monthly escalation rates for payment for procurement of power by distribution licensees.
* **Applicability:** These rates apply for the month of September 2025.
* **Escalation Rates:**
* Imported Coal: 4.56%
* Transportation of Imported Coal: -2.96%
* Inland Handling of Imported Coal: 0.27%
* **Context:** In accordance with Ministry of Power notifications.
**Impact Analysis**
**Distribution Licensees**
* **Impact:** These licensees are affected by the new escalation rates for power procurement, specifically those rates related to imported coal.
* **Action Required:** Distribution licensees must apply these revised escalation rates to payments under their Power Purchase Agreements (PPAs) for the month of September 2025.
**Power Producers (Suppliers of Power)**
* **Impact:** Power producers who supply electricity to distribution licensees under Power Purchase Agreements (PPAs) are impacted by the change in the escalation rates for coal as their payments will be subject to change as per the revised rates.
* **Action Required:** Review PPAs to adjust invoices and financial planning for September 2025 deliveries.
Key Entities Referenced
Central Electricity Regulatory Commission (CERC): The 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: Ministry of Power guidelines, dated 19.01.2005, which is the basis for this notification.
SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy: A policy related to coal allocation in India, referenced in the CERC notification.
Distribution Licensees: The entities to which the escalation rates apply for power procurement.
Ministry of Power (MOP): The government ministry whose guidelines are referenced.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-24102025-267105
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
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[जवज्ञापन-III/4/असा./412/2025-26]
CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 30th September, 2025
No. Eco-M9/2025-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 September 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:
Sr. Description Monthly Escalation
No. Rates for Payment
1 Escalation rate for imported coal 4.56%
2 Escalation rate for transportation of imported coal (-)2.96%
3 Escalation rate for inland handling of imported coal 0.27%
HARPREET SINGH PRUTHI, Secy.
[ADVT.-III/4/Exty./412/2025-26]
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