The Central Electricity Regulatory Commission (CERC) has announced the monthly escalation rates applicable for March 2025. These rates pertain to the payment calculations for procurement of power by distribution licensees under long-term Power Purchase Agreements (PPAs). This notification was published on April 11, 2025.
The announcement follows key MoP directives, including its communication to CERC dated April 13, 2022, and a resolution dated July 11, 2022. These directives amend the “Guidelines for Long-Term Procurement of Electricity from Thermal Power Stations” developed on a Design, Build, Finance, Own, and Operate (DBFOO) basis. The amendments also align with fuel sourcing provisions outlined in the SHAKTI Policy (Scheme for Harnessing and Allocating Koyala Transparently in India), particularly under categories B(I), B(III), and B(IV).
The newly released escalation rates, effective for the month of March 2025, are as follows:
| Sl. No. | Description | Monthly Escalation Rate for Payment |
| 1 | Escalation rate for imported coal | -3.24% |
| 2 | Escalation rate for transportation of imported coal | -4.20% |
| 3 | Escalation rate for inland handling of imported coal | -0.49% |
These rates are crucial for determining payments under PPAs executed in line with the bidding process guidelines laid down by the MoP. They are intended to ensure transparency and predictability in power procurement costs, particularly when sourcing fuel under the SHAKTI framework.
