Central Electricity Regulatory Commission

In pursuance of Clause 5.6 (vi) of Ministry of Power s Notification on Guidelines for Determination of Tariff by Bidding Process for Procurement of Power

Issue Date: 03 November 2025 Published: 07 November 2025

Gazette ID: CG-DL-E-07112025-267448 Download PDF

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Core Purpose

The Central Electricity Regulatory Commission notifies the annual escalation rates for the period from October 1, 2025, to March 31, 2026, for the purpose of payment for power procurement by distribution licensees.

Detailed Summary

The Central Electricity Regulatory Commission (CERC), vide Notification F. No. Eco-2/2025-CERC dated October 22, 2025, in New Delhi, has notified specific annual escalation rates applicable for the period from October 1, 2025, to March 31, 2026. These rates are for payments related to the Procurement of Power by Distribution Licensees under existing Power Purchase Agreements. This notification is issued in pursuance of Clause 5.6 (vi) of the Ministry of Power’s Notification on “Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees” dated January 19, 2005 (as amended), and paragraphs 5.4 and 5.5 of the Ministry of Power’s Resolution on “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” dated July 22, 2020 (read with amendment dated November 3, 2020). Key escalation rates include: domestic coal at 1.46%; domestic gas at 6.86%; imported coal at (-)27.58%; transportation of imported coal at (-)22.01%; inland handling of imported coal at (-)0.90%; and inland transportation charges for coal across all distances at 0.00%. For inland transportation of gas, rates are 10.20% for Zone-1 (Up to 300 Km), 2.73% for Zone-2 (300-1200 Km), and 13.53% for Zone-3 (above 1200 Km). Imported gas escalation is (-)24.81%; transportation of imported gas is (-)22.01%; and inland handling of imported gas is (-)0.90%. The inflation rate for indexed capacity charge component is (-)0.90%, and for indexed energy charge component in cases of captive fuel source is (-)0.97%.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-07112025-267448 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY NEW DELHI, MONDAY, NOVEMBER 3, 2025/ KARTIKA 12, 1947 CENTRAL ELECTRICITY REGULATORY COMMISSION NOTIFICATION New Delhi, the 22nd October, 2025 F. No. Eco-2/2025-CERC.—In pursuance of Clause 5.6 (vi) of Ministry of Power’s Notification on “Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees”, dated 19.01.2005, as amended from time to time, and in pursuance of paragraph 5.4 and paragraph 5.5 of the Ministry of Power’s Resolution on “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” dated 22.07.2020 read with amendment dated 03.11.2020, the Central Electricity Regulatory Commission notifies the following escalation rates for the purpose of payment. Annual Escalation Rates applicable for the period from 1.10.2025 to 31.3.2026 for the purpose of payment for Procurement of Power by Distribution Licensees as per the Power Purchase Agreement entered into under the guidelines mentioned above: +--------+-----------------------------------------------------------------------------------+-----------------------------+ | Sr. | Description | Annual Escalation Rates for | | No. | | Payment (%) | +--------+-----------------------------------------------------------------------------------+-----------------------------+ | 1 | Escalation rate for domestic coal | 1.46% | | 2 | Escalation rate for domestic gas | 6.86% | | 3 | Escalation rates for different escalable sub-components | | | | of energy charge for plants based on imported coal | | | 3.1 | Escalation rate for imported coal | (-)27.58% | | 3.2 | Escalation rate for transportation of imported coal | (-)22.01% | | 3.3 | Escalation rate for inland handling of imported coal | (-)0.90% | | 4 | Escalation rates for inland transportation charges for coal | | | 4.1 | Up to 100 Km distance | 0.00% | | 4.2 | Up to 125 Km distance | 0.00% | | 4.3 | Up to 500 Km distance | 0.00% | | 4.4 | Up to 1000 Km distance | 0.00% | | 4.6 | Up to 2000 Km distance | 0.00% | | 4.7 | Beyond 2000 Km distance | 0.00% | | 5 | Escalation rate for inland transportation charges for gas | | | 5.1 | Zone-1 (Up to 300 Km) | 10.20% | | 5.2 | Zone-2 (300-1200 Km) | 2.73% | | 5.3 | Zone-3 (above 1200 Km) | 13.53% | | 6 | Escalation rates for different escalable sub-components | | | | of energy charge for plants based on imported gas | | | 6.1 | Escalation rate for imported gas | (-)24.81% | | 6.2 | Escalation rate for transportation of imported gas | (-)22.01% | | 6.3 | Escalation rate for inland handling of imported gas | (-)0.90% | | 7 | Inflation rate to be applied to indexed capacity charge component | (-)0.90% | | 8 | Inflation rate to be applied to indexed energy charge | (-)0.97% | | | component in cases of captive fuel source | | +--------+-----------------------------------------------------------------------------------+-----------------------------+ HARPREET SINGH PRUTHI, Secy. [ADVT.-III/4/Exty./443/2025-26] Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. AMIT KUMAR JAISWAL Digitally signed by AMIT KUMAR JAISWAL Date: 2025.11.07 16:19:15 +05'30'

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