Date: 2026-06-18Category: Extra OrdinaryState: Union GovernmentCountry: India
In pursuance of Clause 56 (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)
**Executive Summary**
This notification issued by the Central Electricity Regulatory Commission (CERC) on June 1, 2026, establishes the monthly escalation rates for May 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 under the Design, Build, Finance, Own, and Operate (DBFOO) model and those sourcing fuel through 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) Notification dated January 19, 2005.
* It incorporates provisions from the MOP Resolution dated July 11, 2022, regarding long-term electricity procurement from thermal power stations.
* It adheres to the SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) policy dated March 6, 2019, specifically sections B(I), B(III), and B(IV).
* **Specific Escalation Rates for May 2026**
* **Imported Coal:** An escalation rate of 1.09% is applicable for the purpose of payment.
* **Transportation of Imported Coal:** A negative escalation (reduction) rate of (-)17.47% has been notified.
* **Inland Handling of Imported Coal:** An escalation rate of 0.29% is applicable.
* **Application Criteria**
* These rates are to be used for the purpose of payment for power procurement as per the specific Power Purchase Agreements (PPA) entered into under the mentioned guidelines.
**Impact Analysis**
**Distribution Licensees**
**Impact**
The cost of power procurement for the month of May 2026 will be directly influenced by these rates, including a significant reduction in the transportation component of imported coal costs.
**Action Required**
Licensees must apply these specific escalation and de-escalation percentages when processing payments to power generators for the May 2026 billing cycle.
**Thermal Power Station Operators (DBFOO and SHAKTI coal beneficiaries)**
**Impact**
Generators will see their payment receipts adjusted based on these monthly indices, particularly reflecting the 17.47% decrease in transportation escalation for imported coal.
**Action Required**
Operators must ensure that invoices raised for power supplied in May 2026 accurately reflect the CERC-notified escalation rates in accordance with their Power Purchase Agreements.
Key Entities Referenced
Central Electricity Regulatory Commission (CERC): The regulatory body responsible for notifying the escalation rates for the purpose of payment for power procurement.
SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy: A policy framework governing the allocation of coal and procurement of electricity from thermal power stations.
Ministry of Power (MOP): The central ministry that issued the guidelines and resolutions for tariff determination and long-term power procurement.
Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees: The regulatory guidelines used to determine electricity tariffs through a bidding process.
Guidelines for long term Procurement of Electricity from Thermal Power Stations (DBFOO): Guidelines for power procurement from stations established on a Design, Build, Finance, Own and Operate (DBFOO) basis.
रजिस्ट्रीस.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-25062026-273826
xxxGIDHxxx
CG-DL-E-25062026-273826
xxxGIDExxx
असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 407] नई दिल्ली, बृहस्ट्प जतवार, िनू 18, 2026/ज्य ष्े ठ 28, 1948
No. 407] NEW DELHI, THURSDAY, JUNE 18, 2026/JYAISTHA 28, 1948
dsUæh; fo|qr fofu;ked vk;ks x
vf/klwpu k
नई दिल्ली] 1 twu] 2026
फा. स.ं bZdks&5,e@2026&dsfofov.k—Þforj.k vuqKfIr /kkfj;kas }kjk ÅtkZ dh mikfIRk ds fy,
ckys h çfØ;k }kjk VSfjQ dk vo/kkj.k djus grs q ekxZ n'kZd fl)kra ß ls lacaf/kr fo|qr e=a ky; dh
le;≤ ij ;Fkk la'kkfs /kr rkjh[k 19-01-2005 dh vf/klwpuk ds [kaM 5-6 ¼vi½ ds vuqlj.k eas] dsUnzh;
fo|qr fofu;ked vk;ksx dk s fo|qr ea=ky; ds i= fnukad 13-04-2022 vkSj **'kfDr ¼Hkkjr esa dk;s yk]
ikjn'khZ :Ik es a vkcafVr djus okys vkSj gkuZsflax ds fy, ;kts uk½ uhfr** fnukad 06-03-2019 ds ch¼ ½] ch¼ ½
I III
vkSj ch¼ ½ ds v/khu dk;s ys ds vkcVa u lfgr ekWMy ckys h nLrkots kas ds v/khu ;Fkk çnÙk fMtkbu] fuekZ.k]
IV
foÙk] LokfeRo vkSj çpkyu ¼Mhch,Qvkvs k½s vk/kkj vkjS lzkrs baZ/ku ij LFkkfir FkeZy ikoj LVs'kuks a ls fo|qr
dh nh?kZ dkfyd mikfIr ds fy, ekxZfunsZ'k** ds la'kk/s ku ij fnukda 11-07-2022 ds çLrko ds vuqlj.k es]a
dsfofovk Hkqxrku ds iz;kts u ds fy, fuEufyf[kr o`f) njksa dk s vf/klwfpr djrk gSA
mijksä ekx ZfunsZ'kksa ds va rgxqZ, rÅtkZ Ø; djkj ds vuqlkj forj.k vuqKfIr /kkfj;ksa }k ÅjktkZ dh
mikfIR kgsr qlank; ds ç;kstu ds fy, ebZ 2026 gsr qykxw ekfld o`f) njsa %
4481 GI/2026 (1)2 THEGAZETTEOFINDIA : EXTRAORDINARY [PART III—SEC.4]
Hkqxrk gusr q
Ø-la- fooj.k
Ekfld o`f) nj
1- vk;kfrr dks;y s ds fy, o`f) nj 1.09%
2- vk;kfrr dks;y s ds ifjogu ds fy, o`f) nj (-)17.47%
3- vk;kfrr dks;y s dh varnZs'kh; mBkbZ&/kjkbZ ds fy, o`f) nj 0.29%
gjizhr flag çqFkh] lfpo
[जवज्ञापन-III/4/असा./176/2026-27]
CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 1st June, 2026
F. No. Eco-M5/2026-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 May 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 1.09%
2 Escalation rate for transportation of imported coal (-)17.47%
3 Escalation rate for inland handling of imported coal 0.29%
HARPREET SINGH PRUTHI, Secy.
[ADVT.-III/4/Exty./176/2026-27]
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.