Date: 2026-07-22Category: 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) has notified the monthly escalation rates for June 2026 regarding power procurement by distribution licensees. These rates apply to long-term electricity procurement from thermal power stations operating on a Design, Build, Finance, Own, and Operate (DBFOO) basis under the SHAKTI policy guidelines. The notification, dated July 3, 2026, provides the necessary figures for payment calculations under existing Power Purchase Agreements.
**Key Points / Main Content**
**Regulatory Basis**
* The notification is issued in pursuance of the Ministry of Power (MOP) "Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees" (2005).
* It incorporates amendments related to the SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy dated March 6, 2019.
* The rates apply specifically to thermal power stations set up on a DBFOO basis with coal allocation under categories B(I), B(III), and B(IV).
**Escalation Rates for June 2026**
* **Imported Coal:** An escalation rate of 6.08% is fixed for the payment of imported coal.
* **Transportation:** The escalation rate for the transportation of imported coal is set at 5.62%.
* **Inland Handling:** The escalation rate for the inland handling of imported coal is set at 0.94%.
**Impact Analysis**
**Distribution Licensees**
**Impact**
Distribution licensees are affected as these rates determine the monthly payment obligations for power procured from thermal stations under the specified guidelines.
**Action Required**
Licensees must apply these escalation rates (6.08%, 5.62%, and 0.94%) to calculate and process payments for the month of June 2026 as per their Power Purchase Agreements.
**Thermal Power Generators (DBFOO basis)**
**Impact**
Generators operating under DBFOO and SHAKTI policy frameworks will have their revenue for June 2026 adjusted based on these certified escalation rates.
**Action Required**
Generators must ensure their billing and invoicing for the period of June 2026 reflect the notified escalation rates for imported coal, transportation, and inland handling.
Key Entities Referenced
Central Electricity Regulatory Commission (CERC): The primary regulatory body that notifies the monthly escalation rates for power procurement payments by distribution licensees.
Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees: The regulatory framework under which tariffs are determined for electricity procurement by distribution companies.
SHAKTI Policy: The 'Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India' which governs the allocation of coal to thermal power stations.
Guidelines for long term Procurement of Electricity from Thermal Power Stations (DBFOO): Specific guidelines for procuring power from thermal stations established on a Design, Build, Finance, Own and Operate basis.
Ministry of Power (MOP): The central ministry responsible for issuing the foundational notifications and resolutions that empower the CERC to set tariff guidelines.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-27072026-274862
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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./238/2026-27]
CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 3rd July, 2026
No. Eco-M6/2026-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 June 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 6.08%
2 Escalation rate for transportation of imported coal 5.62%
3 Escalation rate for inland handling of imported coal 0.94%
HARPREET SINGH PRUTHI, Secy.
[ADVT.-III/4/Exty./238/2026-27]
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.