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Union of India - Section

Section 29 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014

29. Operation and Maintenance Expenses.

(1)Normative Operation and Maintenance expenses of thermal generating stations shall be as follows:
(a)Coal based and lignite fired (including those based on Circulating Fluidised Bed Combustion (CFBC) technology) generating stations, other than the generating stations/units referred to in clauses (b) and (d):
        (in Rs Lakh/MW)
Year 200/210/250 MW Sets 300/330/350 MW Sets 500 MW Sets 600 MW Sets and above
FY 2014-15 23.90 19.95 16.00 14.40
FY 2015-16 25.40 21.21 17.01 15.31
FY 2016-17 27.00 22.54 18.08 16.27
FY 2017-18 28.70 23.96 19.22 17.30
FY 2018-19 30.51 25.47 20.43 18.38
Provided that the norms shall be multiplied by the following factors for arriving at norms of O&M expenses for additional units in respective unit sizes for the units whose COD occurs on or after 1.4.2014 in the same station:
200/210/250 MW Additional 5th& 6thunits 0.90
  Additional 7th& more units 0.85
300/330/350 MW Additional 4th& 5thunits 0.90
  Additional 6th& more units 0.85
500 MW and above Additional 3rd& 4thunits 0.90
  Additional 5th& above units 0.85
(b)Talcher Thermal Power Station (TPS), Tanda TPS, Badarpur TPS Unit 1 to 3 of NTPC and Chandrapura TPS Unit 1 to 3 and Durgapur TPS Unit 1 of DVC:
    (in Rs Lakh/MW)
Year Talcher TPS Chandrapura TPS (Units 1 to 3), Tanda TPS,Badarpur TPWS (Unit 1 to 3) , Durgapur TPS (Unit 1)
2014-15 43.16 35.88
2015-16 45.87 38.14
2016-17 48.76 40.54
2017-18 51.83 43.09
2018-19 55.09 45.80
(c)Open Cycle Gas Turbine/Combined Cycle generating stations:
        (in Rs Lakh/MW)
Year Gas Turbine/ Combined Cycle generatingstations other than small gas turbine power generating stations Small gas turbine power generating stations Agartala GPS Advance F Class Machines
2014-15 14.67 33.43 41.32 26.55
2015-16 15.59 35.70 44.14 28.36
2016-17 16.57 38.13 47.14 30.29
2017-18 17.61 40.73 50.35 32.35
2018-19 18.72 43.50 53.78 34.56
(d)Lignite-fired generating stations :
    (in Rs Lakh/MW)
Year 125 MW Sets TPS-I of NLC
2014-15 29.10 38.12
2015-16 30.94 40.52
2016-17 32.88 43.07
2017-18 34.95 45.78
2018-19 37.15 48.66
(e)Generating Stations based on coal rejects :
Year O&M Expenses (in Rs Lakh/MW)
2014-15 29.10
2015-16 30.94
2016-17 32.88
2017-18 34.95
2018-19 37.15
(2)The Water Charges and capital spares for thermal generating stations shall be allowed separately:Provided that water charges shall be allowed based on water consumption depending upon type of plant, type of cooling water system etc., subject to prudence check. The details regarding the same shall be furnished along with the petition:Provided that the generating station shall submit the details of year wise actual capital spares consumed at the time of truing up with appropriate justification for incurring the same and substantiating that the same is not funded through compensatory allowance or special allowance or claimed as a part of additional capitalisation or consumption of stores and spares and renovation and modernization.
(3)Hydro Generating Station :
(a)Following operations and maintenance expense norms shall be applicable for hydro generating stations which have been operational for three or more years as on 01.04.2014:
            (in Rs lakh)
Sr. No. Name of Station 2014-15 2015-16 2016-17 2017-18 2018-19
A. NHPC
1. Bairasul 8696.25 9274.03 9890.19 10547.30 11248.06
2. Loktak 9673.64 10316.36 11001.78 11732.74 12512.26
3. Salal 14429.58 15388.29 16410.68 17501.01 18663.78
4. Tanakpur 7101.62 7573.45 8076.63 8613.24 9185.51
5. Chamera-I 10664.95 11373.53 12129.19 12935.05 13794.46
6. Uri 7419.40 7912.34 8438.04 8998.66 9596.54
7. Rangit 4576.46 4880.52 5204.78 5550.58 5919.36
8. Chamera-II 7256.54 7738.66 8252.82 8801.14 9385.89
9. Dhauliganga 7181.89 7659.05 8167.92 8710.59 9289.33
10. Dulhasti 13746.97 14660.32 15634.36 16673.10 17780.86
11. Teesta-V 8297.32 8848.59 9436.50 10063.46 10732.07
12. Sewa-II 6157.56 6566.67 7002.96 7468.24 7964.43
D. NHDC
1. Indira Sagar 8607.73 9179.63 9789.52 10439.94 11133.57
2. Omkareshwar 4515.31 4815.30 5135.23 5476.42 5840.27
E. NEEPCO
1. Kopili–I 6132.72 6540.18 6974.71 7438.11 7932.3
2. Ranganadi 7033.08 7500.36 7998.68 8530.12 9096.86
3. Doyang 3900.10 4159.22 4435.56 4730.26 5044.54
4. Khandong 1233.87 1317.89 1405.45 1498.82 1598.41
5. Kopili-II 321.00 342.33 365.07 389.32 415.19
F. DVC
1. Panchet 1546.42 1649.17 1758.74 1875.59 2000.20
2. Tilaiya 698.99 745.43 794.95 847.77 904.10
3. Maithon 1914.46 2041.66 2177.31 2321.97 2476.24
(b)for hydro generating stations of Satluj Jal Vidyut Nigam Limited (SJVNL) and Tehri Development Corporation Limited (THDC), the O&M expenses shall be approved as per the following methodology:
(i)The operation and maintenance expenses shall be derived on the basis of actual operation and maintenance expenses for the years 2008-09 to 2012-13, based on the audited balance sheets, excluding abnormal operation and maintenance expenses, if any, after prudence check by the Commission.
(ii)The normalised operation and maintenance expenses after prudence check, for the years 2008-09 to 2012-13, shall be escalated at the rate of 6.04% to arrive at the normalized operation and maintenance expenses at the 2012-13 price level respectively and then averaged to arrive at normalized average operation and maintenance expenses for the 2008-09 to 2012-13 at 2012-13 price level. The average normalized operation and maintenance expenses at 2012-13 price level shall be escalated at the rate of 6.04% to arrive at the operation and maintenance expenses for year 2013-14 and thereafter escalated at the rate of 6.64% p.a., to arrive at the O&M expenses for the period FY 2014-15 to FY 2018-19.
(c)In case of the hydro generating stations, which have not been in commercial operation for a period of three years as on 1.4.2014, operation and maintenance expenses shall be fixed at 2% of the original project cost (excluding cost of rehabilitation and resettlement works) for the first year of commercial operation.
Further, in such case, operation and maintenance expenses in first year of commercial operation shall be escalated @6.04% per annum up to the year 2013-14 and then averaged to arrive at the O&M expenses at 2013-14 price level. It shall be thereafter escalated @ 6.64%per annum to arrive at operation and maintenance expenses in respective year of the tariff period.
(d)In case of the hydro generating stations declared under commercial operation on or after 1.4.2014, operation and maintenance expenses shall be fixed at 4% and 2.50% of the original project cost (excluding cost of rehabilitation & resettlement works) for first year of commercial operation for stations less than 200 MW projects and for stations more than 200 MW respectively and shall be subject to annual escalation of 6.64% per annum for the subsequent years.
(3)Transmission system :
(a)The following normative operation and maintenance expenses shall be admissible for the transmission system :
Norms for sub-stations(in Rs Lakh per bay) 2014-15 2015-16 2016-17 2017-18 2018-19
765 kV 84.42 87.22 90.12 93.11 96.20
400 kV 60.30 62.30 64.37 66.51 68.71
220 kV 42.21 43.61 45.06 46.55 48.10
132 kV and below 30.15 31.15 32.18 33.25 34.36
400 kV Gas Insulated Substation 51.54 53.25 55.02 56.84 58.73
Norms for AC and HVDC lines (in Rs Lakh per km)
Single Circuit (Bundled Conductor with six or moresub-conductors) 0.707 0.731 0.755 0.780 0.806
Single Circuit (Bundled Conductor with four subconductors) 0.606 0.627 0.647 0.669 0.691
Single Circuit (Twin & Triple Conductor) 0.404 0.418 0.432 0.446 0.461
Single Circuit (Single Conductor) 0.202 0.209 0.216 0.223 0.230
Double Circuit (Bundled conductor with four or moresub-conductors) 1.062 1.097 1.133 1.171 1.210
Double Circuit (Twin & Triple Conductor) 0.707 0.731 0.755 0.780 0.806
Double Circuit (Single Conductor) 0.303 0.313 0.324 0.334 0.346
Multi Circuit (Bundled conductor with four or moresub-conductors) 1.863 1.925 1.989 2.055 2.123
Multi Circuit (Twin & Triple Conductor) 1.240 1.282 1.324 1.368 1.413
Norms for HVDC Stations
HVDC Back–to-back stations (Rs. Lakh per 500 MW) 578 627 679 736 797
Rihand-Dadri HVDC bipole scheme (Rs. Lakh) 1511 1637 1774 1922 2082
Talcher-Kolar HVDC bipole scheme (Rs. Lakh) 1173 1271 1378 1493 1617
Balia-Bhiwadi HVDC bipole scheme (Rs. Lakh) 1537 1666 1805 1955 2119
Provided that operation and maintenance expenses for new HVDC bi-pole scheme for a particular year shall be allowed pro-rata on the basis of normative rate of operation and maintenance expense for 2000 MW, Talcher-Kolar HVDC bi-pole scheme for the respective year:Provided further that the O&M expenses norms for HVDC bi-pole line shall be considered as Single Circuit quad AC line.
(b)The total allowable operation and maintenance expenses for the transmission system shall be calculated by multiplying the number of bays and kms of line length with the applicable norms for the operation and maintenance expenses per bay and per km respectively.
(c)The operation and maintenance expenses of communication system forming part of inter-state transmission system shall be derived on the basis of the actual O&M expenses for the period of 2008-09 to 2012-13 based on audited accounts excluding abnormal variations if any after prudence check by the Commission. The normalised O&M expenses after prudence check, for the years 2008-09 to 2012-13 shall be escalated at the rate of 3.02% for computing base year expenses for FY 2012-13 and 2013-14 and at the rate of 3.32% for escalation from 2014-15 onwards.
Chapter - 7 Computation of Capacity Charges and Energy Charges