TARIFF STRUCTURE: 2014-19

1. CAPACITY CHARGE
2. ENERGY CHARGE
3. INCENTIVE
4. DEVIATION SETTLEMENT MECHANISM
Salient Features of CERC (Terms and Conditions of Tariff) Regulations, 2014
TARIFF STRUCTURE: 2014-19
ANNUAL CAPACITY (FIXED) CHARGES
Capacity Charge: for recovery of annual fixed cost
Capacity Charge: AFC x ( PAFY / NAPAF) subjected to max (PAFY) = NAPAF
Where
AFC = Annual Fixed cost
NAPAF = Normative annual plant availability factor (85 %)
PAFY = Plant availability for the year
PAFM = Plant availability for the month
PAF = 10000 X DCi / {n X IC x (100-AUX)} %
Note: 1. Plant Availability Factor implies DC of the individual stages
2. 100% AFC receivable at DC of 85%
TARIFF STRUCTURE: 2014-19
Components of ANNUAL CAPACITY (FIXED) CHARGES
1. Return on Equity
1. Base Rate: 15.50%
2. Non-compliance to RGMO/FGMO, data elementary, Communication
system/ Protection system: RoE shall reduced by 1%
2. Interest on Loan Capital
3. Depreciation
4. Interest on Working Capital
a) Cost of Coal stock : 15 days for pit head station, 30 days for non-pit head
station for 85% PAF
b) Cost of Coal : 30 days for generation for 85% PAF
c) Cost of Secondary Fuel: 2 months for 85% PAF
d) Maintenance spares: @ 20% of O&M expenses specified
e) Receivables equivalent to 2 months of fixed and energy charges for sale of
electricity for 85% PAF
f) O&M expenses for 1 month
5. O&M Expenses (Rs Lakh/MW)
2014-15: 16.00 2015-16: 17.01 2016-17: 18.08
2017-18: 19.22 2018-19: 20.43
a) Water charges shall be reimbursed separately
b) Capital spare shall be allowed subjected to verification
TARIFF STRUCTURE: 2014-19
ENERGY (VARIABLE) CHARGES
Energy Charges: for recovery of Fuel Cost (Coal and Oil)
Energy Charges: EC = ECR X SCHEDULE GENERATION
Transit & Handling loss of coal: 0.2 % for pit head and 0.8% for non-pit head
station. For imported coal it is 0.2%
Energy Charge Rate (ECR)
The Energy Charge Rate in Rs/Kwh shall be determined to three decimal places :
ECR ={(GHR SFC x CVSF) x LPPF/CVPF + SFC x LPSFi} x 100/(100 AUX)
Where,
ECR = Energy charge rate, in Rupees per kWh
GHR = Gross station heat rate, in kcal per kWh.
SFC = Normative Specific fuel oil consumption, in ml/kWh
CVSF = Calorific value of secondary fuel, in kCal/ml
LPPF = Landed price of primary fuel, in Rupees per kg
LPSF = Landed price of secondary fuel, in Rupees per ml
CVPF = Gross calorific value of primary fuel as received, in kCal per kg
AUX = Normative APC , in %
TARIFF STRUCTURE: 2014-19
NORMS OF OPERATION, TSTPS
Annual Plant Availability Factor (NAPAF) 85 %
Gross Station Heat Rate (GHR) 2375 Kcal/kwh
Secondary Fuel oil Consumption (SFC) 0.5 ml/kwh
APC, with CT & TDBFP (AUX) 5.75 %
Note:
Provided that in view of shortage of coal and uncertainty of assured coal supply on sustained
basis experienced by the generating stations, the NAPAF for recovery of fixed charges
shall be 83% till the same is reviewed.
TARIFF STRUCTURE: 2014-19
Sharing of Net Gain
Net Gain = (ECRn ECRa) x Scheduled Generation
ECRn Normative Energy Charge Rate
ECRa Actual Energy Charge Rate
This is to be shared at 60:40 ratio
INCENTIVE
Incentive shall be receivable at a flat rate of 50 paise/kWh for ex-bus
scheduled energy corresponding to scheduled generation (SG) in
excess of ex-bus energy corresponding to Normative Annual Plant
Load Factor (NAPLF)
SG = 10000 X SGi / {n X IC x (100-AUX)} %
Incentive receivable at SG> 85 %
Deviation Settlement Mechanism
Objective
The objective of these regulations is to maintain grid discipline and grid
security as envisaged under the Grid Code through the commercial
mechanism for Deviation Settlement through drawal and injection of
electricity by the users of the grid.
Deviation in a time-block for a seller means its total actual injection minus
its total scheduled generation and for a buyer means its total actual drawal
minus its total scheduled drawal.
Charges of Deviation Settlement Mechanism
frequency
<49.7
>=49.7,
<50.05
>=50.05,
<50.1
>=50.1
> volume
limit
Zero Zero Zero -1.78
Receivable
Normal
Volume
Normal Normal Zero -1.78
Normal +
100%
Normal Zero Zero
Payable
< Volume
limit
Normal +
100%
Normal +
Penalty
Zero Zero
Clause
5.1 Charges of deviation for each 0.01 Hz is 35.60 paisa/ Kwhfor freq <50.05 to >=50.00 Hz
Charges of deviation for each 0.01 Hz is 20.84 paisa/ Kwhfor freq <50 to >=49.70 Hz
for freq<49.70, 824.04 paisa/ Kwh and for freq>=50.05, 0 paisa/ Kwh
5.1.I Station using Coal/ gas/ lignite under APM, the Cap rate is 303.04 paisa/ Kwh(<49.95, >=49.94 Hz)
5.1.IV Overinjection charges in excess of volume is 'Zero'
7.2 Overinjection/ Underinjection shall not exceed the volume when freq>=49.7
7.2.I Underinjection not permissible when freq<49.7
Overinjection not permissible when freq>=50.1
7.3 add charges on underinjection when freq>=49.7
7.4 add charges on overinjection when freq>=50.1 is 1.78 Rs/ Kwh(<50.01, >=50.00 Hz)
7.5 annexure I & II
7.6 add charges on underinjectionwhen freq<49.7 is 3.0304 Rs/ Kwh