The Central Electricity Regulatory Commission (CERC) has issued a notification detailing the monthly escalation rates applicable for February 2025 for the purpose of payments related to the procurement of power by distribution licensees. This announcement is made in accordance with the Ministry of Power (MOP) guidelines and resolutions governing tariff determination and long-term power procurement.
The CERC has notified the following monthly escalation rates to be used for payment purposes for power procurement agreements entered into under the aforementioned guidelines:
| Sr. No. | Description | Monthly Escalation Rates for Payment |
|---|---|---|
| 1 | Escalation rate for imported coal | -3.85% |
| 2 | Escalation rate for transportation of imported coal | 6.23% |
| 3 | Escalation rate for inland handling of imported coal | -0.12% |
These escalation rates are used to adjust the payment amounts in power purchase agreements to account for fluctuations in the costs of key components, such as imported coal and its transportation and handling. This mechanism ensures that both power generators and distribution licensees can manage their financial obligations effectively in a dynamic market environment.
Distribution licensees and power generators with Power Purchase Agreements (PPAs) that fall under the specified guidelines will utilize these monthly escalation rates for calculating payments for power procured during February 2025. This notification provides clarity and transparency in the financial aspects of power procurement in the Indian electricity sector.
