Date: 2026-01-09Category: 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 December 24, 2025, announces the monthly escalation rates applicable for December 2025, regarding the procurement of power by distribution licensees. These rates are determined in accordance with the Ministry of Power's guidelines on tariff determination through bidding processes and the SHAKTI policy. The notification outlines specific escalation rates for imported coal.
**Key Points / Main Content**
* **Purpose:** To notify the monthly escalation rates for the purpose of payment for power procurement by distribution licensees.
* **Authority:** Based on the Ministry of Power (MOP) notifications and resolutions, particularly:
* Clause 5.6 (vi) of MOP Notification dated 19.01.2005 on tariff determination through bidding.
* MOP communication to CERC dated 13.04.2022.
* MOP Resolution dated 11.07.2022 on guidelines for long-term power procurement from thermal power stations.
* SHAKTI Policy dated 06.03.2019.
* **Applicable Period:** Monthly Escalation Rates applicable for December 2025.
* **Escalation Rates:**
* Escalation rate for imported coal: 7.88%
* Escalation rate for transportation of imported coal: (-)2.15%
* Escalation rate for inland handling of imported coal: (-)0.03%
**Impact Analysis**
**Distribution Licensees**
* **Impact:** Distribution licensees are directly affected by the notification, as it determines the monthly escalation rates applicable for their power procurement costs.
* **Action Required:** Distribution licensees must apply these escalation rates to their payments for power procured under the Power Purchase Agreements (PPAs) that fall under the mentioned guidelines for the month of December 2025.
**Power Producers**
* **Impact:** Power producers selling electricity to Distribution Licensees based on the aforementioned policy will have adjustments in their payments based on these rates.
* **Action Required:** Power Producers need to adjust billing according to the CERC escalation percentages.
Key Entities Referenced
Central Electricity Regulatory Commission (CERC): The primary regulator involved in determining tariff and payment matters related to power procurement.
"Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees": The referenced guidelines by the Ministry of Power that form the basis for the notification.
Ministry of Power: The ministry whose notifications and communications are referenced as the basis for CERC's actions.
"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": Another set of guidelines being amended to determine the escalation rates for power procurement.
SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy: Scheme under which coal allocations are determined, referenced in the guidelines.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एलxx.x-GअID.-H0x9xx0 12026-269250
CG-DLxx-xEG-I0D9E0x1x2x0 26-269250
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./602/2025-26]
CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 24th December, 2025
No. Eco-M12/2025-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 December 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 7.88%
2 Escalation rate for transportation of imported coal (-)2.15%
3 Escalation rate for inland handling of imported coal (-)0.03%
HARPREET SINGH PRUTHI, Secy.
[ADVT.-III/4/Exty./602/2025-26]
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.