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Core Purpose

The Central Electricity Regulatory Commission notifies annual escalation rates for payment related to the procurement of power by distribution licensees for the period from April 1, 2026, to September 30, 2026.

Detailed Summary

The Central Electricity Regulatory Commission (CERC), via Notification F. No. Eco-1/2026-CERC dated April 16, 2026, in New Delhi, has notified annual escalation rates for the period from April 1, 2026, to September 30, 2026. 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. 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 its amendment dated November 3, 2020. The specified rates include: 0.48% for domestic coal; 8.11% for domestic gas; 6.97% for imported coal; (-)19.86% for transportation of imported coal; 2.99% for inland handling of imported coal; 0.00% for inland transportation charges for coal across all distances; 0.00% for inland transportation charges for gas across all zones; (-)25.15% for imported gas; (-)19.86% for transportation of imported gas; 2.99% for inland handling of imported gas; 2.99% for the inflation rate applied to the indexed capacity charge component; and 0.84% for the inflation rate applied to the indexed energy charge component in cases of captive fuel source. The notification is signed by Harpreet Singh Pruthi, Secretary.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-18052026-272674 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 319] NEW DELHI, MONDAY, MAY 18, 2026/VAISAKHA 28, 1948 CENTRAL ELECTRICITY REGULATORY COMMISSION NOTIFICATION New Delhi, the 16th April, 2026 F. No. Eco-1/2026-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 01.04.2026 to 30.09.2026 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 | 0.48% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 2 | Escalation rate for domestic gas | 8.11% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 3 | Escalation rates for different escalable sub-components | | | | of energy charge for plants based on imported coal | | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 3.1 | Escalation rate for imported coal | 6.97% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 3.2 | Escalation rate for transportation of imported coal | (-)19.86% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 3.3 | Escalation rate for inland handling of imported coal | 2.99% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 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% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 4.5 | Up to 2000 Km distance | 0.00% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 4.6 | Beyond 2000 Km distance | 0.00% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 5 | Escalation rate for inland transportation charges for gas | | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 5.1 | Zone-1 (Up to 300 Km) | 0.00% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 5.2 | Zone-2 (300-1200 Km) | 0.00% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 5.3 | Zone-3 (above 1200 Km) | 0.00% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 6 | Escalation rates for different escalable sub-components | | | | of energy charge for plants based on imported gas | | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 6.1 | Escalation rate for imported gas | (-)25.15% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 6.2 | Escalation rate for transportation of imported gas | (-)19.86% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 6.3 | Escalation rate for inland handling of imported gas | 2.99% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 7 | Inflation rate to be applied to indexed capacity charge component | 2.99% | +-----+-------------------------------------------------------------------------+-----------------------------------+ | 8 | Inflation rate to be applied to indexed energy charge | 0.84% | | | component in cases of captive fuel source | | +-----+-------------------------------------------------------------------------+-----------------------------------+ HARPREET SINGH PRUTHI, Secy. [ADVT.-III/4/Exty./78/2026-27] 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.

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