Section 15 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019
15. Capacity Charges.
- The capacity charges shall be derived on the basis of annual fixed cost. The Annual Fixed Cost (AFC) of a generating station or a transmission system including communication system shall consist of the following components:(a)Return on equity;(b)Interest on loan capital;(c)Depreciation; Interest on working capital; and(d)Operation and maintenance expenses:Provided that Special Allowance in lieu of R&M, where opted in accordance with Regulation 28 of these regulations, shall be recovered separately and shall not be considered for computation of working capital.
