Home India Central Electricity Regulatory Commission In pursuance of Clause 5.6 (vi) of the Ministry of Power (MO...
Date: 2025-09-17 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 document is a notification issued by the Central Electricity Regulatory Commission (CERC) on September 9, 2025, regarding the monthly escalation rates applicable for August 2025. These rates are relevant for the procurement of power by Distribution Licensees, based on Power Purchase Agreements. The notification is in pursuance of the Ministry of Power (MOP) guidelines for tariff determination and electricity procurement. **Key Points / Main Content** * **Context:** * The notification follows Clause 5.6 (vi) of the MOP notification dated 19.01.2005, communication dated 13.04.2022, and resolution dated 11.07.2022 regarding electricity procurement guidelines. * It pertains to long-term electricity procurement from thermal power stations set up on a Design, Build, Finance, Own and Operate (DBFOO) basis. * It includes coal allocation under specific provisions of the SHAKTI policy dated 6.03.2019. * **Monthly Escalation Rates (August 2025):** * Escalation rate for imported coal: (-)2.12% * Escalation rate for transportation of imported coal: (-)1.96% * Escalation rate for inland handling of imported coal: (-)0.07% **Impact Analysis** **Distribution Licensees** * **Impact:** Affected by the monthly escalation rates when procuring power as per Power Purchase Agreements. * **Action Required:** Incorporate the notified escalation rates for August 2025 into payment calculations for power procurement.

Key Entities Referenced

Central Electricity Regulatory Commission (CERC): The primary regulator issuing the notification regarding escalation rates for power procurement. "Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees": A key policy document providing the basis for tariff determination, dated 19.01.2005 and amended over time. Ministry of Power (MOP): The government ministry that issued the guidelines and communicated with CERC. SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy: A policy related to coal allocation, influencing power procurement, dated 6.03.2019.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-22092025-266285 xxxGIDHxxx CG-DL-E-22092025-266285 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 635] दिल्ली, बुधवार , जसतम्ब र 17, 2025/भाद्र 26, 1947 No. 635] DELHI, WEDNESDAY, SEPTEMBER 17, 2025/BHADRA 26, 1947 dsUæh; fo|qr fofu;ked vk;kxs नई दिल्ली] 9 flrEcj] 2025 —Þforj.k vuqKfIr/kkfj;ksa }kjk ÅtkZ dh mikfIRk ds fy, cksyh çfØ;k }kjk VSfjQ dk vo/kkj.k dju s gsrq ekxZn'kZd fl)kra ß ls lacfa/kr fo|qr ea=ky; dh le;≤ ij ;Fkkla'kksf/kr rkjh[k 19-01-2005 dh vf/klwpuk ds [kMa 5-6 ¼vi½ ds vuqlj.k es]a dsUnzh; fo|qr fofu;ked vk;kxs dks fo|qr ea=ky; ds i= fnukad 13-04-2022 vkSj **'kfDr ¼Hkkjr es a dks;yk] ikjn'khZ :Ik es a vkcafVr dju s okys vkSj gkuZsflax ds fy, ;kts uk½ uhfr** fnukda 06-03-2019 ds ch¼I½] ch¼III½ vkSj ch¼IV½ ds v/khu dk;s ys ds vkcaVu lfgr ekWMy cksyh nLrkostks a ds v/khu ;FkkçnÙk fMtkbu] fuekZ.k] foÙk] LokfeRo vkSj çpkyu ¼Mhch,Qvksvks½ vk/kkj vkSj lzkrs bZa/ku ij LFkkfir FkeZy ikoj LVs'kuks a ls fo|qr dh nh?kZdkfyd mikfIr ds fy, ekxZfunsZ'k** ds la'kk/s ku ij fnukad 11-07-2022 ds çLrko ds vuqlj.k esa] dsfofovk Hkqxrku ds iz;kts u ds fy, fuEufyf[kr o`f) njksa dks vf/klwfpr djrk gSA mijkäs ekxZfunZs'kksa ds varxZr gq, ÅtkZ Ø; djkj ds vuqlkj forj.k vuqKfIr/kkfj;ks a }kjk ÅtkZ dh mikfIRk grs q lank; ds ç;kstu ds fy, vxLr 2025 gsrq ykxw ekfld o`f) njs%a Ø-l-a fooj.k Hkqxrku grs q ekfld o`f) nj 1- vk;kfrr dks;ys ds fy, o`f) nj (-)2.12% 2- vk;kfrr dks;ys ds ifjogu ds fy, o`f) nj (-)1.96% 6171 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] 3- vk;kfrr dks;ys dh varnZs'kh; mBkbZ&/kjkbZ ds fy, o`f) nj (-)0.07% gjizhr flag çqFkh] lfpo [जवज्ञापन -III/4/असा./368/25-26] CENTRAL ELECTRICITY REGULATORY COMMISSION NOTIFICATION New Delhi, the 9th September, 2025 No. Eco-M8/2025-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 August 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 No. Rates for Payment 1 Escalation rate for imported coal (-)2.12% 2 Escalation rate for transportation of imported coal (-)1.96% 3 Escalation rate for inland handling of imported coal (-)0.07% HARPREET SINGH PRUTHI, Secy. [ADVT-III/4/Exty./368/25-26] 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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