cerc_norms_2014-19

TARIFF STRUCTURE: 2014-19

1. CAPACITY CHARGE2. ENERGY CHARGE3. INCENTIVE4. DEVIATION SETTLEMENT MECHANISM

Salient Features of CERC (Terms and Conditions of Tariff) Regulations, 2014


ANNUAL CAPACITY (FIXED) CHARGES

Capacity Charge: for recovery of annual fixed cost

Capacity Charge: AFC x ( PAFY / NAPAF) subjected to max (PAFY) = NAPAF

WhereAFC = Annual Fixed cost NAPAF = Normative annual plant availability factor (85 %)PAFY = Plant availability for the yearPAFM = 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 stages2. 100% AFC receivable at DC of 85%

TARIFF STRUCTURE: 2014-19Components of ANNUAL CAPACITY (FIXED) CHARGES

1. Return on Equity1. 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 Capitala) Cost of Coal stock : 15 days for pit head station, 30 days for non-pit head

station for 85% PAFb) Cost of Coal : 30 days for generation for 85% PAFc) Cost of Secondary Fuel: 2 months for 85% PAFd) Maintenance spares: @ 20% of O&M expenses specifiede) Receivables equivalent to 2 months of fixed and energy charges for sale of

electricity for 85% PAFf) O&M expenses for 1 month

5. O&M Expenses (Rs Lakh/MW)2014-15: 16.00 2015-16: 17.01 2016-17: 18.082017-18: 19.22 2018-19: 20.43

a) Water charges shall be reimbursed separatelyb) Capital spare shall be allowed subjected to verification


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 kWhGHR = Gross station heat rate, in kcal per kWh.SFC = Normative Specific fuel oil consumption, in ml/kWhCVSF = Calorific value of secondary fuel, in kCal/mlLPPF = Landed price of primary fuel, in Rupees per kgLPSF = Landed price of secondary fuel, in Rupees per mlCVPF = Gross calorific value of primary fuel as received, in kCal per kgAUX = Normative APC , in %


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 sustainedbasis experienced by the generating stations, the NAPAF for recovery of fixed charges shall be 83% till the same is reviewed.


Sharing of Net Gain

Net Gain = (ECRn ECRa) x Scheduled Generation ECRn Normative Energy Charge RateECRa Actual Energy Charge RateThis 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 drawalminus its total scheduled drawal.

Charges of Deviation Settlement Mechanism

frequency =49.7, =50.05,

=50.1

> volume limit Zero Zero Zero -1.78

Receivable

Normal Volume

Normal Normal Zero -1.78

Normal + 100% Normal Zero Zero

Payable< Volume

limitNormal +

100%Normal + Penalty Zero Zero

Clause

5.1 Charges of deviation for each 0.01 Hz is 35.60 paisa/Kwh for freq =50.00 Hz

Charges of deviation for each 0.01 Hz is 20.84 paisa/Kwh for freq =49.70 Hz

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 (=49.94 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=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 (=50.00 Hz)

7.5 annexure I & II

7.6 add charges on underinjection when freq

cerc_norms_2014-19

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