On April 25, 2024, the Karnataka Electricity Regulatory Commission (KERC) issued the Draft Karnataka Electricity Regulatory Commission (Terms and Conditions for Determination of Generation Tariff) Regulations, 2024. This significant development brings about several changes and clarifications to the existing regulations.
The supply of infirm power will be in accordance with the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2022, amended from time to time, until separate regulations are issued by the Commission. Importantly, any revenue earned by the generating company from the supply of infirm power, after accounting for fuel expenses, will be applied in adjusting the capital cost accordingly.
The input price for the supply of coal or lignite from integrated mines prior to their commercial operation has been clarified. For coal, the price will be the lower of the estimated price available in the investment approval or the notified price of Coal India Limited for the corresponding grade of coal supplied to the power sector. For lignite, it will be the lower of the estimated price available in the investment approval or the last available pooled lignite price as determined by the Commission for the transfer price of lignite. Any revenue earned from the supply of coal or lignite before the commercial operation of the integrated mines will be applied in adjusting the capital cost of the said mines.
The KERC has invited stakeholders to submit their objections, suggestions, and views on the proposed draft within 30 days from April 25, 2024. Submissions can be sent to the Secretary of the Commission at the following address: The Secretary, Karnataka Electricity Regulatory Commission, No 16, C-1, Miller Tank Bed Area, Vasanthanagar, Bengaluru-560052.
This notification will come into force from April 1, 2024, and unless reviewed earlier or extended by the Commission, shall remain in force up to March 31, 2029.
