Date: 2025-09-17Category: 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 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.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-22092025-266285
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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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6171 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
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[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.