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Core Purpose

The Central Electricity Regulatory Commission notifies monthly escalation rates for January 2026 for payment purposes related to the procurement of power by Distribution Licensees.

Detailed Summary

The Central Electricity Regulatory Commission (CERC) issued Notification No. Eco-M1/2026-CERC on January 27, 2026, in New Delhi. This notification establishes monthly escalation rates for January 2026, intended for payments related to the procurement of power by Distribution Licensees under Power Purchase Agreements. This action is taken 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 January 19, 2005 (as amended). It also references a MOP communication to CERC dated April 13, 2022, and a MOP Resolution dated July 11, 2022, which amended 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 March 6, 2019. The specific escalation rates for January 2026 are: (-)2.96% for imported coal, (-)5.87% for transportation of imported coal, and 0.14% for inland handling of imported coal.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-20022026-270354 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 115] NEW DELHI, TUESDAY, FEBRUARY 17, 2026/MAGHA 28, 1947 1223 GI/2026 CENTRAL ELECTRICITY REGULATORY COMMISSION NOTIFICATION New Delhi, the 27th January, 2026 No. Eco-M1/2026-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 January 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 | Monthly Escalation | | No. | | Rates for Payment | +=====+===========================================+===========================+ | 1 | Escalation rate for imported coal | (-)2.96% | +-----+-------------------------------------------+---------------------------+ | 2 | Escalation rate for transportation of | (-)5.87% | | | imported coal | | +-----+-------------------------------------------+---------------------------+ | 3 | Escalation rate for inland handling of | 0.14% | | | imported coal | | +-----+-------------------------------------------+---------------------------+ HARPREET SINGH PRUTHI, Secy. [ADVT.-III/4/Exty./690/2025-26] 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. GORAKHA NATH YADAVA Digitally signed by GORAKHA NATH YADAVA Date: 2026.02.20 15:06:42+05'30'

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