Section 44 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019
44. Computation and Payment of Capacity Charge and Energy Charge for Hydro Generating Stations.
(1)The fixed cost of a hydro generating station shall be computed on annual basis, based on norms specified under these regulations, and shall be recovered on monthly basis under capacity charge (inclusive of incentive) and energy charge, which shall be payable by the beneficiaries in proportion to their respective allocation in the saleable capacity of the generating station, i.e., in the capacity excluding the free power to the home State:Provided that during the period between the date of commercial operation of the first unit of the generating station and the date of commercial operation of the generating station, the annual fixed cost shall provisionally be worked out based on the latest estimate of the completion cost for the generating station, for the purpose of determining the capacity charge and energy charge payment during such period.(2)The capacity charge (inclusive of incentive) payable to a hydro generating station for a calendar month shall be:AFC x 0.5 x NDM / NDY x (PAFM / NAPAF) (in Rupees)Where,AFC = Annual fixed cost specified for the year, in RupeesNAPAF = Normative plant availability factor in percentageNDM = Number of days in the monthNDY = Number of days in the yearPAFM = Plant availability factor achieved during the month, in percentage(3)The PAFM shall be computed in accordance with the following formula:NPAFM = 10000 x DCi / { N x IC x ( 100 - AUX ) } %i = 1WhereAUX = Normative auxiliary energy consumption in percentageDCi = Declared capacity (in ex-bus MW) for the ii day of the month which the station can deliver for at least three (3) hours, as certified by the nodal load dispatch centre after the day is over.IC = Installed capacity (in MW) of the complete generating stationN = Number of days in the month(4)The energy charge shall be payable by every beneficiary for the total energy scheduled to be supplied to the beneficiary, excluding free energy, if any, during the calendar month, on ex-bus basis, at the computed energy charge rate. Total energy charge payable to the generating company for a month shall be:Energy Charges = (Energy charge rate in Rs. / kWh) x {Scheduled energy (ex-bus) for the month in kWh} x (100 - FEHS) / 100(5)Energy charge rate (ECR) in Rupees per kWh on ex-power plant basis, for a hydro generating station, shall be determined up to three decimal places based on the following formula, subject to the provisions of clause (7) of this Regulation:ECR = AFC x 0.5 x 10 / {DE x (100 - AUX) x (100 - FEHS)}Where,DE = Annual design energy specified for the hydro generating station, in MWh, subject to the provision in clause (6) below.FEHS = Free energy for home State, in per cent, as mentioned in Note 3 under Regulation 55 of these regulations.(6)In case the saleable scheduled energy (ex-bus) of a hydro generating station during a year is less than the saleable design energy (ex-bus) for reasons beyond the control of the generating station, the treatment shall be as per clause (7) of this Regulation, on an application filed by the generating company.(7)Shortfall in energy charges in comparison to fifty percent of the annual fixed cost shall be allowed to be recovered in six equal monthly installments:Provided that in case actual generation from a hydro generating station is less than the design energy for a continuous period of four years on account of hydrology factor, the generating station shall approach the Central Electricity Authority with relevant hydrology data for revision of design energy of the station.(8)Any shortfall in the energy charges on account of saleable scheduled energy (ex-bus) being less than the saleable design energy (ex-bus) during the tariff period 2014-19 which was beyond the control of the generating station and which could not be recovered during the said tariff period shall be recovered in accordance with clause (7) of this Regulation.(9)In case the energy charge rate (ECR) for a hydro generating station, computed as per clause (5) of this Regulation exceeds one hundred and twenty paise per kWh, and the actual saleable energy in a year exceeds { DE x ( 100 - AUX ) x ( 100 - FEHS ) /10000 } MWh, the energy charge for the energy in excess of the above shall be billed at one hundred and twenty paise per kWh only.(10)In case of the hydro generating stations located in the State of Jammu and Kashmir, any expenditure incurred for payment of water usage charges to the State Water Resources Development Authority, Jammu under Jammu Kashmir Water Resources (Regulations and Management) Act, 2010 shall be payable by the beneficiaries as additional energy charge in proportion of the supply of power from the generating stations on month to month basis:Provided that the provisions of this clause shall be subject to the decision of the Hon'ble High Court of Jammu Kashmir in OWP No. 604/2011 and shall stand modified in accordance with the decision of the High Court.
