Date: 2026-02-17Category: 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 Power by Distribution Licensees
**Executive Summary**
This notification from the Central Electricity Regulatory Commission (CERC), dated January 27, 2026, announces the monthly escalation rates applicable for January 2026. These rates are for the purpose of payment for power procured by Distribution Licensees under Power Purchase Agreements, as per the Ministry of Power guidelines. The notification is in pursuance of Clause 5.6 (vi) of the Ministry of Power (MOP) Notification.
**Key Points / Main Content**
* **Context:**
* Based on Ministry of Power notifications and guidelines regarding tariff determination through bidding for power procurement by distribution licensees.
* Relates to long-term procurement of electricity from thermal power stations under the DBFOO basis and fuel sourcing as per the SHAKTI policy.
* Follows a proposal dated July 11, 2022, to amend guidelines for long term Procurement of Electricity.
* **Escalation Rates for January 2026:**
* Escalation rate for imported coal: (-)2.96%
* Escalation rate for transportation of imported coal: (-)5.87%
* Escalation rate for inland handling of imported coal: 0.14%
**Impact Analysis**
**Distribution Licensees**
* **Impact:** The distribution licensees are directly affected by these rates as they impact the cost of procuring power through Power Purchase Agreements.
* **Action Required:** The distribution licensees need to incorporate these escalation rates for the purpose of payments made for the procured energy.
Key Entities Referenced
Central Electricity Regulatory Commission (CERC): The primary regulator issuing the notification regarding monthly escalation rates for power procurement.
Ministry of Power (MOP): The ministry whose guidelines and notifications form the basis for CERC's escalation rate adjustments.
"Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees": A key policy document issued by the Ministry of Power establishing the framework for tariff determination.
SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy: Policy relating to the allocation of coal, referenced in the notification.
Distribution Licensees: The entities affected by the monthly escalation rates applicable for January 2026 for Procurement of Power.
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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./690/2025-26]
CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 27th January, 2026
No. Eco-M1/2026-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 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 Monthly Escalation
No. Rates for Payment
1 Escalation rate for imported coal (-)2.96%
2 Escalation rate for transportation of imported coal (-)5.87%
3 Escalation rate for inland handling of imported coal 0.14%
HARPREET SINGH PRUTHI, Secy.
[ADVT.-III/4/Exty./690/2025-26]
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.