Home India Central Electricity Regulatory Commission In pursuance of Clause 5.6 (vi) of the Ministry of Power (MO...
Date: 2026-02-17 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 by Distribution Licensees

Issued by Central Electricity Regulatory Commission · Not Applicable

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Executive Summary & Key Takeaways

**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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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-20022026-270354 xxxGIDHxxx CG-DL-E-20022026-270354 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 115] नई दिल्ली, मगं लवार, फरवरी 17, 2026/माघ 28, 1947 No. 115] NEW DELHI, TUESDAY, FEBRUARY 17, 2026/MAGHA 28, 1947 dsUæh; fo|qr fofu;ked vk;ks x अजधसचू ना नई दिल्ली, 27 tuojh, 2026 la- bZdks&,e1@2026&dsfo.f—ov kÞforj.k vuqKfIr/kkfj;ks a }kjk ÅtkZ dh mikfIRk ds fy, ckys h çfØ;k }kjk VSfjQ dk vo/kkj.k djus grs q ekxZn'kdZ fl)kra ß ls lacaf/kr fo|qr e=a ky; dh le;≤ ij ;Fkk la'kkfs/kr rkjh[k 19-01-2005 dh vf/klwpuk ds [kaM 5-6 ¼vi½ ds vuqlj.k eas] dsUnzh; fo|qr fofu;ked vk;kxs dk s fo|qr e=a ky; ds i= fnukad 13-04-2022 vkSj **'kfDr ¼Hkkjr eas dk;s yk] ikjn'khZ :Ik es a vkcfaVr djus okys vkSj gkuZsflax ds fy, ;kts uk½ uhfr** fnukda 06-03-2019 ds ch¼I½] ch¼III½ vkjS ch¼IV½ ds v/khu dk;s ys ds vkcVa u lfgr ekWMy ckys h nLrkots kas ds v/khu ;FkkçnÙk fMtkbu] fuekZ.k] foÙk] LokfeRo vkSj çpkyu ¼Mhch,Qvkvs k½s vk/kkj vkSj lzksr bZa/ku ij LFkkfir FkeZy ikoj LVs'kuksa ls fo|qr dh nh?kdZ kfyd mikfIr ds fy, ekxZfunsZ'k** ds la'kk/s ku ij fnukda 11-07-2022 ds çLrko ds vuqlj.k es]a dsfofovk Hkqxrku ds iz;kts u ds fy, fuEufyf[kr o`f) njkas dk s vf/klwfpr djrk gSA mijksä ekxZfunsZ'kksa ds varxZr gq, ÅtkZ Ø; djkj ds vuqlkj forj.k vuqKfIr/kkfj;ksa }kjk ÅtkZ dh mikfIRk gsrq lank; ds ç;kstu ds fy, tuojh 2026 gsrq ykxw ekfld o`f) njs a% 1223 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] Hkqxrku gsrq ekfld o`f) Ø-la- fooj.k nj 1- vk;kfrr dks;ys ds fy, o`f) nj (-)2.96% 2- vk;kfrr dks;ys ds ifjogu ds fy, o`f) nj (-)5.87% 3- vk;kfrr dks;ys dh varnsZ'kh; mBkbZ&/kjkbZ ds fy, o`f) nj 0.14% gjizhr flag çqFkh, lfpo [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.

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