CERC amends guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees

Jul 03, 2018 | by Avantis RegTech Legal Research Team


The Central Electricity Regulatory Commission (CERC) vide notification dated June 01, 2018 has amended guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensee.

Central Electricity Regulatory Commission notifies various annual escalation rates (including the escalation rate for domestic coal) for the purpose of payment.

As per the methodology developed in July 2009, CERC has been using Wholesale Price Index (WPI) for Non-coking coal published by Department of Industrial Policy & Promotion (DIPP) for computing the escalation rate for domestic coal. On 12.5.2017, the Office of the Economic Advisor, DIPP, Ministry of Commerce & Industry published the new series of WPI (Base 2011-12) from April 2012. The escalation rate for domestic coal for the purpose of payment based on the new series of WPI for Non-coking coal (G7-G14) is more reflective of the prices of grades of Non-coking coal used by the power sector as compared to the old series of WPI for Non-coking coal (which represents the price of all grades of Non-coking coal i.e. G1-G17)

Therefore, consequent to the availability of the new series of WPI for Non-coking coal (G7-G14), the Commission has decided to adopt the new series from April 2012 for notification of the escalation rates for domestic coal as under:

(i)                  The escalation rates (based on the new series) applicable from April 2013 to March 2017 shall be used only for correcting the payment index (base energy charges) and not for the purpose of payment.

(ii)                The escalation rates (based on the new series) applicable from April 2017 shall be used for payment. Accordingly, the escalation rates for domestic coal notified (as provisional) in April 2017 and October 2017 shall be considered as final.

[No. Eco-A/2018-CERC]

 

URL: http://egazette.nic.in/WriteReadData/2018/186952.pdf


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