The Central Electricity Regulatory Commission (CERC) has issued notifications regarding transmission service rates for the period from April 1st, 2024, to September 30th, 2024. These rates are determined following the “Tariff-based Competitive Bidding Guidelines for Transmission Service” and relevant Ministry of Power guidelines. These rates were published on May 17, 2024.
The following are the annual escalation rates contemplated under the notifications:
Payment Rates
The annual inflation rate for payment of transmission charges is set at 4.96%.
Discount Rates:
The discount rate for determining relief under force majeure events and changes in law during construction is set at 9.25%.
Bid Evaluation Rates (for old projects):
- The annual escalation rate for bid evaluation of transmission charges is set at 4.32%.
- The discount rate for calculation of levelized transmission charges for bid evaluation is also set at 9.25%.
These rates will be used for determining payments for existing transmission services and for evaluating bids for new transmission projects based on older bidding documents.
