The Ministry of Power has announced the annual escalation rates applicable for the period from October 1, 2024, to March 31, 2025. These rates will be used to calculate payments for power procured by distribution licensees under various Power Purchase Agreements (PPAs). This notification was published on November 11, 2024.
Key Escalation Rates:
- Domestic Coal: 0.00%
- Domestic Gas: 0.61%
- Imported Coal:
- Imported Coal: -9.55%
- Transportation of Imported Coal: -6.86%
- Inland Handling of Imported Coal: 0.51%
- Inland Transportation Charges for Coal: 0.00% for all distance ranges
- Inland Transportation Charges for Gas: 0.00% for all zones
- Imported Gas:
- Imported Gas: -23.80%
- Transportation of Imported Gas: -6.86%
- Inland Handling of Imported Gas: 0.51%
- Inflation Rate for Indexed Capacity Charge: 0.51%
- Inflation Rate for Indexed Energy Charge (Captive Fuel Source): -0.62%
These escalation rates will be used to adjust the payments made to power producers based on changes in fuel costs and other relevant factors. The negative escalation rates for imported coal and gas indicate a decrease in the cost of these fuels, which may lead to lower electricity prices for consumers.
