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Core Purpose

The Central Electricity Regulatory Commission notifies monthly escalation rates for December 2025 for the purpose of payment for Procurement of Power by Distribution Licensees.

Detailed Summary

The Central Electricity Regulatory Commission (CERC) issued a notification on December 24, 2025, announcing the monthly escalation rates applicable for December 2025 for payments related to the Procurement of Power by Distribution Licensees. This notification is issued in pursuance of Clause 5.6 (vi) of the Ministry of Power (MOP) 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), an MOP communication to CERC dated 13.04.2022, and an MOP Resolution dated 11.07.2022. The MOP Resolution specifically addresses an amendment to the "Guidelines for long term Procurement of Electricity from Thermal Power Stations set up on Design, Build, Finance, Own and Operate (DBFOO) basis and sourcing fuel as provided under Model Bidding Documents including allocation of coal under B (I), B(III) and B(IV) of SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy" dated 6.03.2019. The notified escalation rates for December 2025 are: 7.88% for imported coal, (-)2.15% for transportation of imported coal, and (-)0.03% for inland handling of imported coal. These rates are to be applied for payments as per the Power Purchase Agreement entered into under the aforementioned Guidelines.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-09012026-269250 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 27] NEW DELHI, FRIDAY, JANUARY 9, 2026/PAUSHA 19, 1947 203 GI/2026 CENTRAL ELECTRICITY REGULATORY COMMISSION NOTIFICATION New Delhi, the 24th December, 2025 No. Eco-M12/2025-CERC.—In pursuance of Clause 5.6 (vi) of the Ministry of Power (MOP) 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, MOP communication to the Central Electricity Regulatory Commission (CERC) dated 13.04.2022, and MOP Resolution dated 11.07.2022 on an amendment to the "Guidelines for long term Procurement of Electricity from Thermal Power Stations set up on Design, Build, Finance, Own and Operate (DBFOO) basis and sourcing fuel as provided under Model Bidding Documents including allocation of coal under B (I), B(III) and B(IV) of SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India) Policy" dated 6.03.2019, the CERC notifies the following escalation rates for the purpose of payment. Monthly Escalation Rates applicable for December 2025 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 | Monthly Escalation Rates | | No. | | for Payment | +=====+===========================================+============================+ | 1 | Escalation rate for imported coal | 7.88% | +-----+-------------------------------------------+----------------------------+ | 2 | Escalation rate for transportation of | (-)2.15% | | | imported coal | | +-----+-------------------------------------------+----------------------------+ | 3 | Escalation rate for inland handling of | (-)0.03% | | | imported coal | | +-----+-------------------------------------------+----------------------------+ HARPREET SINGH PRUTHI, Secy. [ADVT.-III/4/Exty./602/2025-26] 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. SARVESH KUMAR Digitally signed by SARVESH SRIVASTAVA Date: 2026.01.09 22:43:30 +0530

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