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Date: 2025-03-25 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 of Power

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 notified the escalation rates applicable for February 2025 for the purpose of payment for power procured by distribution licensees.
  • These rates are applicable as per the Power Purchase Agreements (PPAs) entered into under the guidelines for long-term procurement of electricity from thermal power stations.

Key Changes

  • The notification specifies the monthly escalation rates for imported coal, transportation of imported coal, and inland handling of imported coal.
  • The escalation rate for imported coal is negative 3.85%.
  • The escalation rate for transportation of imported coal is 6.23%.
  • The escalation rate for inland handling of imported coal is negative 0.12%.

Impact Analysis

Distribution Licensees

  • Action Items: Update payment systems to reflect the new escalation rates for February 2025. Review existing PPAs to ensure compliance with the notified rates.

Thermal Power Stations

  • Action Items: Re-evaluate financial models based on the updated escalation rates to project revenue and profitability. Engage with distribution licensees to clarify any payment-related issues.

Consumers

  • Action Items: Monitor the impact of these escalation rates on overall electricity costs. Advocate for policies that promote stable and affordable electricity prices for consumers.

Coal Importers

  • Action Items: Review contracts with transportation and handling providers to optimize costs. Monitor market trends to anticipate future changes in escalation rates.

Key Entities Referenced

Central Electricity Regulatory Commission (CERC): The regulatory body that issued the notification and is responsible for regulating the power sector in India. Ministry of Power (MOP): The government ministry that provides policy guidance and direction to the power sector. Distribution Licensees: Entities responsible for distributing electricity to consumers. Thermal Power Stations: Power plants that generate electricity using thermal energy, in this case, using imported coal as fuel. SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy: A policy by the Ministry of Power related to coal allocation. Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees: Guidelines issued by the Ministry of Power for determining tariffs through bidding.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-25032025-261941 xxxGIDHxxx CG-DL-E-25032025-261941 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 238] नई दिल्ली, मगं लिार, मार् च25, 2025/र्त्रै 4, 1947 No. 238] NEW DELHI, TUESDAY, MARCH 25, 2025/CHAITRA 4, 1947 ubZ fnYyh] 5 ekpZ] 2025 .—Þforj.k vuqKfIr/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 ea=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 dk s fo|qr ea=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 dk;s y s 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 1- vk;kfrr dks;y s ds fy, o`f) nj (-)3.85% 2- vk;kfrr dks;y s ds ifjogu ds fy, o`f) nj 6.23% 3- vk;kfrr dks;y s dh varnZs'kh; mBkbZ&/kjkbZ ds fy, o`f) nj (-)0.12% gjizhr flag çqFkh] lfpo [जिज्ञापन-III/4/असा./1096/2024-25] 2028 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] CENTRAL ELECTRICITY REGULATORY COMMISSION NOTIFICATION New Delhi, the 5th March, 2025 No. Eco-M2/2025-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 February 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 Rates No. for Payment 1 Escalation rate for imported coal (-)3.85% 2 Escalation rate for transportation of imported coal 6.23% 3 Escalation rate for inland handling of imported coal (-)0.12% HARPREET SINGH PRUTHI, Secy. [ADVT.-III/4/Exty./1096/2024-25] 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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