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Core Purpose

The Central Electricity Regulatory Commission notifies annual escalation rates for the period from 1.4.2025 to 30.9.2025 for the purpose of payment for Procurement of Power by Distribution Licensees.

Detailed Summary

This notification by the Central Electricity Regulatory Commission (CERC), dated 21st April, 2025 (F. No. Eco-1/2025-CERC), notifies annual escalation rates applicable for the period from 1.4.2025 to 30.9.2025. These rates are for the purpose of payment for Procurement of Power by Distribution Licensees as per Power Purchase Agreements entered into under specific guidelines. The 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 19.01.2005 (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 22.07.2020 (read with amendment dated 03.11.2020). The notified annual escalation rates for payment (%) include: 0.00% for domestic coal, 2.13% for domestic gas, (-)11.22% for imported coal, (-)14.65% for transportation of imported coal, 4.72% for inland handling of imported coal, 0.00% for inland transportation charges for coal up to 2000 Km distance and beyond 2000 Km distance, 10.20% for inland transportation charges for gas in Zone-1 (Up to 300 Km), 2.73% in Zone-2 (300-1200 Km), (-)13.53% in Zone-3 (above 1200 Km), 44.20% for imported gas, (-)14.65% for transportation of imported gas, 4.72% for inland handling of imported gas, 4.72% for the inflation rate applied to the indexed capacity charge component, and 0.77% for the inflation rate applied to the indexed energy charge component in cases of captive fuel source.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-09052025-263005 EXTRAORDINARY PART III-Section 4 PUBLISHED BY AUTHORITY No. 356] NEW DELHI, THURSDAY, MAY 8, 2025/VAISAKHA 18, 1947 CENTRAL ELECTRICITY REGULATORY COMMISSION NOTIFICATION New Delhi, the 21st April, 2025 F. No. Eco-1/2025-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 1.4.2025 to 30.9.2025 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 | Annual Escalation Rates for | | No. | | Payment (%) | +=====+===================================================================================================+===============================+ | 1 | Escalation rate for domestic coal | 0.00% | +-----+---------------------------------------------------------------------------------------------------+-------------------------------+ | 2 | Escalation rate for domestic gas | 2.13% | +-----+---------------------------------------------------------------------------------------------------+-------------------------------+ | 3 | Escalation rates for different escalable sub-components | | | | of energy charge for plants based on imported coal | | +-----+---------------------------------------------------------------------------------------------------+-------------------------------+ | 3.1 | Escalation rate for imported coal | (-)11.22% | +-----+---------------------------------------------------------------------------------------------------+-------------------------------+ | 3.2 | Escalation rate for transportation of imported coal | (-)14.65% | +-----+---------------------------------------------------------------------------------------------------+-------------------------------+ | 3.3 | Escalation rate for inland handling of imported coal | 4.72% | +-----+---------------------------------------------------------------------------------------------------+-------------------------------+ | 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 | 44.20% | +-----+---------------------------------------------------------------------------------------------------+-------------------------------+ | 6.2 | Escalation rate for transportation of imported gas | (-)14.65% | +-----+---------------------------------------------------------------------------------------------------+-------------------------------+ | 6.3 | Escalation rate for inland handling of imported gas | 4.72% | +-----+---------------------------------------------------------------------------------------------------+-------------------------------+ | 7 | Inflation rate to be applied to indexed capacity charge component | 4.72% | +-----+---------------------------------------------------------------------------------------------------+-------------------------------+ | 8 | Inflation rate to be applied to indexed energy charge | 0.77% | | | component in cases of captive fuel source | | +-----+---------------------------------------------------------------------------------------------------+-------------------------------+ HARPREET SINGH PRUTHI, Secy. [ADVT.-III/4/Exty./88/2025-26]

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