Revised Guidelines for long term Procurement of Electricity from Thermal Power Stations set up on Design, Build, Finance, Own and Operate (DBFOO) basis

Fuel Charge under Model Power Supply Agreement DBFOO is the amount payable by the Utility to the Supplier for the fuel utilized in generation of electricity. Since the risk of variation in fuel price cannot normally be managed by the Supplier, it must be passed on to the Utility, which, in turn, will have to reflect it in the distribution tariff. As per the amended guidelines escalation rates shall be determined by Central Electricity Regulatory Commission.