Date: 2026-05-13Category: 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**
The Central Electricity Regulatory Commission (CERC) issued this notification on April 27, 2026, to define monthly escalation rates for April 2026. These rates are mandatory for calculating payments related to the procurement of power by distribution licensees from thermal power stations. The guidelines apply specifically to stations operating on a DBFOO basis with coal sourced under the SHAKTI policy.
**Key Points / Main Content**
**Regulatory Framework**
* The notification is issued in pursuance of Clause 5.6 (vi) of the Ministry of Power (MOP) guidelines dated January 19, 2005.
* It incorporates amendments from the MOP communication dated April 13, 2022, and the MOP Resolution dated July 11, 2022.
* The provisions apply to thermal power stations established on a Design, Build, Finance, Own, and Operate (DBFOO) basis.
* It covers fuel sourcing under the "Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India" (SHAKTI) Policy.
**Notified Escalation Rates for April 2026**
* **Imported Coal:** The escalation rate for the cost of imported coal is set at 11.60%.
* **Transportation:** The escalation rate for the transportation of imported coal is set at 88.01%.
* **Inland Handling:** The escalation rate for the inland handling of imported coal is set at 0.26%.
**Impact Analysis**
**Distribution Licensees**
**Impact**
Distribution licensees are directly affected as these rates determine the payment obligations for power procured during the month of April 2026.
**Action Required**
Licensees must apply these specific escalation percentages when processing payments and settling invoices under existing Power Purchase Agreements (PPAs).
**Thermal Power Producers (DBFOO Basis)**
**Impact**
Producers sourcing coal under the SHAKTI policy will see their variable payment components adjusted based on these notified rates.
**Action Required**
Producers must ensure their billing for the period of April 2026 accurately reflects the escalation rates for imported coal, transportation, and inland handling as notified by the CERC.
Key Entities Referenced
Central Electricity Regulatory Commission (CERC): The regulatory body that notified the monthly escalation rates for power procurement payments for April 2026.
Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees: The primary regulatory framework under which tariff determination and escalation rates for distribution licensees are governed.
SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy: A government scheme for the transparent allocation of coal to thermal power stations, central to the sourcing of fuel in this notification.
Guidelines for long term Procurement of Electricity from Thermal Power Stations set up on DBFOO basis: Policy documents governing the long-term procurement of electricity from projects using the Design, Build, Finance, Own and Operate model.
Ministry of Power (MOP): The central ministry whose notifications and resolutions form the legal basis for the CERC's determination of these rates.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-18052026-272658
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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./86/2026-27]
CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 27th April , 2026
No. Eco-M4/2026-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 April 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 11.60%
2 Escalation rate for transportation of imported coal 88.01%
3 Escalation rate for inland handling of imported coal 0.26%
HARPREET SINGH PRUTHI, Secy.
[ADVT.-III/4/Exty./86/2026-27]
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.