The gazette notification issued by the Central Electricity Regulatory Commission (CERC) announces the annual inflation rate for escalable transmission charges and the discount rate for determining relief under Force Majeure Event & Change in Law during the construction period for transmission service agreements. These rates are applicable for the period from October 1, 2023, to March 31, 2024.
Key Changes
The annual inflation rate for escalable transmission charges for the purpose of payment is set at 0.62%.
The discount rate for determining the Relief under Force Majeure Event & Change in Law during the Construction Period is set at 7.70%.
Impact Analysis
Transmission Service Providers
Action Items: Transmission service providers should review their risk management strategies and insurance coverage to account for the 7.70% discount rate when calculating potential relief under Force Majeure and Change in Law clauses during construction.
Power Purchasers/Discoms
Action Items: Power purchasers and Discoms should update their power purchase agreements (PPAs) and financial forecasts to reflect the new transmission charges based on the 0.62% annual inflation rate.
Project Developers
Action Items: Project developers should update their project cost estimations and risk assessments to incorporate the 7.70% discount rate for Force Majeure and Change in Law events during construction.
Key Entities Referenced
Central Electricity Regulatory Commission (CERC): The regulatory body that issued the notification, responsible for regulating the power sector in India.
Ministry of Power: The government ministry that issued the “Tariff based Competitive-bidding Guidelines for Transmission Service” and the “Revised Guidelines and Standard Bidding Documents (SBDs) for procurement of Inter-State Transmission Services (ISTS) through Tariff Based Competitive Bidding (TBGB) process”.
Tariff based Competitive-bidding Guidelines for Transmission Service: Guidelines issued by the Ministry of Power, amended up to October 10, 2008, that provide a framework for tariff-based competitive bidding for transmission services.
Revised Guidelines and Standard Bidding Documents (SBDs) for procurement of Inter-State Transmission Services (ISTS) through Tariff Based Competitive Bidding (TBGB) process: Guidelines issued by the Ministry of Power on August 6, 2021, for the procurement of Inter-State Transmission Services through Tariff Based Competitive Bidding.
Standard Transmission Service Agreement: The agreement between the transmission service provider and the procurer of transmission services, which outlines the terms and conditions of the service.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-18112023-250121
xxxGIDHxxx
CG-DL-E-18112023-250121
xxxGIDExxx
असाधारण
EXTRAORDINARY
भाग III—खण्ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 762] नई दिल्ली, िुक्रवार, नवम्ब र 17, 2023/कार्ततक 26, 1945
No. 762] NEW DELHI, FRIDAY, NOVEMBER 17, 2023/KARTIKA 26, 1945
ubZ fnYyh] 5 vDrcw j] 2023
.—fo|qr e=a ky; }kjk tkjh fnukad 10 väwcj] 2008 rd la'kksf/kr ^^ikj"sk.k
lsok ds fy, VSfjQ vk/kkfjr çfrLi/kkZRed&cksyh ekxZfunZs'k^^ vkSj ekud ikjs"k.k lsok djkj nLrkostks a dh vuqlwph&7 ds
vuqlj.k es a dsUæh; fo|qr fofu;ked vk;ksx ¼dsfofovk½ fnukad 01-10-2023 ls 31-03-2024 dh vof/k ds fy, lank; ds
ç;kstu gsrq fuEufyf[kr nj dks vf/klwfpr djrk gSA
1- lank; ds ç;kstu gsrq o`f)&;ksX; ikj"sk.k çHkkjks a ds fy, okf"kZd eæq k LQhfr nj 0-62%
2- fo|qr ea=ky; }kjk tkjh fnukad 6 vxLr] 2021 ds ^^VSfjQ vk/kkfjr çfrLi/kkZRed cksyh ¼Vhchthch½ ds ek/;e ls
varj&jkfT;d ikjs"k.k lsok ¼vkbZ,lVh,l½ dh mikfIr ds fy, iqujhf{kr fn'kkfuns'Z k vkSj ekud cksyh nLrkost ¼,lchMh½^^
ds v/khu ekud ikj"sk.k lsok djkj dh vuqlwph&9 ds vuqlkj dsfofovk] fnukad 01-10-2023 ls 31-03-2024 dh vof/k ds
fy, ,rn~}kjk NwV nj dks vf/klwfpr djrk gSA
7191 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
1 fuekZ.k vof/k ds nkSjku vifjgk;Z ?kVuk ,oa fof/k eas ifjorZu ds v/khu jkgr dk fu/kkZj.k dju s 7.70%
ds fy, NwV nj
gjizhr flag çqFkh] lfpo
[जवज्ञापन-III/4/असा./544/2023-24]
CENTRAL ELECTRICITY REGULATORY COMMISSION
NOTIFICATION
New Delhi, the 5th October, 2023
No. Eco T2/2023-CERC.—In pursuance of the "Tariff based Competitive-bidding Guidelines for
Transmission Service", amended up to 10th October, 2008, issued by the Ministry of Power and Schedule-7 of the
Standard Transmission Service Agreement documents, the Central Electricity Regulatory Commission (CERC) hereby
notifies the following rate for the purpose of payment for the period from 01.10.2023 to 31.03.2024.
Annual Escalation Rate applicable for the purpose of payment as per the Transmission Service Agreement:
S. No. Description Annual Escalation Rate for
Payment
1. Annual inflation rate for escalable transmission charges for the 0.62%
purpose of payment
2. In accordance with Schedule-9 of the Standard Transmission Service Agreement under the “Revised
Guidelines and Standard Bidding Documents (SBDs) for procurement of lnter-State Transmission Services (ISTS)
through Tariff Based Competitive Bidding (TBGB) process" dated 6th August 2021 issued by the Ministry of Power,
the CERC hereby notifies the following discount rate for the period from 01.10.2023 to 31.03.2024.
Discount rate for determining the Relief under Force Majeure Event & Change in Law during Construction
Period as per the Transmission Service Agreement:
S. No. Description Rate
1. Discount rate for determining the Relief under Force Majeure 7.70%
Event & Change in Law during Construction Period
HARPREET SINGH PRUTHI, Secy.
[ADVT.-III/4/Exty./544/2023-24]
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.