Section 8 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019
8. Tariff determination.
(1)Tariff in respect of a generating station may be determined for the whole of the generating station or unit thereof, and tariff in respect of a transmission system may be determined for the whole of the transmission system or element thereof or associated communication system:Provided that:(i)In case of commercial operation of all the units of a generating station or all elements of a transmission system prior to 1.4.2019, the generating company or the transmission licensee, as the case may be, shall file consolidated petition in respect of the entire generating station or transmission system for the purpose of determination of tariff for the period 1.4.2019 to 31.3.2024:(ii)In case of commercial operation of units of generating station or elements of the transmission system on or after 1.4.2019, the generating company or the transmission licensee shall file a consolidated petition, in accordance with the provisions of the Procedure Regulations, combining all the units of the generating station or all elements of the transmission system which are anticipated to achieve commercial operation during the next two months from the date of application:(iii)Tariff of the associated communication system forming part of transmission system which has achieved commercial operation prior to 1.4.2014 shall be as per the methodology approved by the Commission prior to 1.4.2014.(2)Where only a part of the generation capacity of a generating station is tied up for supplying power to the beneficiaries through long term power purchase agreement, the units for such part capacity shall be clearly identified and in such cases, the tariff shall be determined for such identified capacity. Where the unit(s) corresponding to such part capacity cannot be identified, the tariff of the generating station may be determined with reference to the capital cost of the entire project, but tariff so determined shall be applicable corresponding to the part capacity contracted for supply to the beneficiaries.(3)In case of expansion of existing generating station, the tariff shall be determined for the expanded capacity in accordance with these regulations:Provided that the common infrastructure of existing generating station, shall be utilized for the expanded capacity and the benefit of new technology in the expanded capacity, as determined by the Commission, shall be extended to the existing capacity.(4)Assets installed for implementation of the revised emission standards shall form part of the existing generation project and tariff thereof shall be determined separately on submission of the completion certificate by the Board of the generating company.(5)Energy charge component of tariff of the generating station sourcing coal or lignite from the integrated mine shall be determined based on the input price of coal or lignite, as the case may be, from such integrated mines:Provided that the generating company shall maintain the account of the integrated mine separately and submit the cost of integrated mine, in accordance with these regulations, duly certified by the Auditor.(6)Tariff of generating station using coal washery rejects developed by Central or State PSUs or Joint Venture between a Government Company and company other than Government Company shall be determined in accordance with these regulations:Provided that in case of Joint Venture between a Government Company and a Company other than Government Company, the shareholding of the company other than Government Company either directly or through any of its subsidiary company or associate company shall not exceed 26% of the paid up share capital:Provided further that the energy charge component of the tariff of such generating station or unit thereof shall be determined based on the fixed cost and the variable cost of the coal washery project:Provided also that the Gross Calorific Value of coal rejects shall be as measured jointly by the generating company and the beneficiaries.(7)In case of multi-purpose hydro schemes, with irrigation, flood control and power components, the capital cost chargeable to the power component of the scheme only shall be considered for determination of tariff.(8)If an existing transmission project is granted licence under section 14 of the Act read with clause (c) of Regulation 6 of the Central Electricity Regulatory Commission (Terms and Conditions of grant of Transmission Licence for inter-State Transmission of electricity and related matters) Regulations, 2009, the tariff of such project shall be applicable from the date of grant of transmission licence or from the date as indicated in the transmission licence, as the case may be. In such cases, the applicant shall file petition as per Annexure-I (Part III) to these regulations, clearly demarcating the assets which form part of the business of generation and transmission, the value of such assets, source of funding and other relevant details after adjusting the cumulative depreciation and loan repayment, duly certified by the Auditor.
