Section 12 in Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017
12. Tariff design.
(1)The single part levellised tariff structure shall be followed for the renewable energy technologies:Provided that for renewable energy technologies having fuel cost component, like biomass power projects and non-fossil fuel based cogeneration, single part tariff with two components, i.e. fixed cost component and fuel cost component, shall be determined.(2)The following fixed cost components shall be included for determining the tariff:-(a)Return on equity;(b)Interest on loan capital;(c)Depreciation;(d)Interest on working capital; and(e)Operation and maintenance expenses.(3)The generic or project specific tariff shall be determined on levellised basis for the tariff period:Provided that tariff for renewable energy technologies, having single part tariff with two components, referred to in the proviso to subregulation (1), shall be determined on levellised basis for the tariff period in respect of the fixed cost component and the fuel cost component shall be specified on year of operation basis.(4)For the purpose of levellised tariff computation, the discount factor equivalent to the post tax weighted average cost of capital shall be considered.
