The Central Electricity Regulatory Commission (CERC) has notified the escalation rates for the purpose of payment for Procurement of Power by Distribution Licensees and bid evaluation. These escalation rates are in accordance with the Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees. These rates were issued by a notification dated May 17, 2024.
The rates also take into account the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Round- The Clock Power from Grid Connected Renewable Energy Power Projects, complemented with Power from Coal Based Thermal Power Projects.
Annual Escalation Rates For Payment for Procurement of Power
These Annual Escalation Rates are applicable for the period from April 1, 2024 to September 30, 2024 for the purpose of payment for Procurement of Power by Distribution Licensees as per the Power Purchase Agreement entered.
These escalation rates cover the following:
- Domestic coal / gas
- Different escalable sub-components of energy charge for plants based on imported coal / gas
- Imported coal / gas
- Transportation of imported coal / gas
- Inland handling of imported coal / gas
- Inland transportation charges for coal for various distances from less than 100km to beyond 2000km which has been fixed at 0.00%
- Inland transportation charges for gas
- Inflation rate to be applied to indexed capacity charge component and
- Inflation rate to be applied to indexed energy charge component in cases of captive fuel source
Annual Escalation Rates for Bid Evaluation (for bid opening up to 31.03.2025)
These Annual Escalation Rates are applicable for bids opening from March 31, 2025 for the purpose of bid evaluation.
These escalation rates cover the following:
- Domestic coal / gas
- Inland transportation charges for coal from less than 125km to beyond 2000km
- Inland transportation charges for gas
- Imported coal / gas
- Transportation of imported coal / gas
- Discount rate to be used for bid evaluation
