Section 30(2) in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014
(2)The capacity charge payable to a thermal generating station for a calendar month shall be calculated in accordance with the following formulae:CC1 = ((AFC/12) (PAF1 / NAPAF) subject to ceiling of (AFC/12))CC2 = ((AFC/6) (PAF2 / NAPAF) subject to ceiling of (AFC/6)) - CC1CC3 = ((AFC/4) (PAF3 / NAPAF) subject to ceiling of (AFC/4)) - (CC1 + CC2)CC4 = ((AFC/3) (PAF4 / NAPAF) subject to ceiling of (AFC/3)) - (CC1 + CC2 + CC3)CC5 = ((AFC x 5/12) (PAF5 / NAPAF) subject to ceiling of (AFC x 5/12)) - (CC1 + CC2 + CC3 + CC4)CC6 = ((AFC/2) (PAF6 / NAPAF) subject to ceiling of (AFC/2)) - (CC1 + CC2 + CC3 + CC4 + CC5)CC7= ((AFC x 7/12) (PAF7 / NAPAF) subject to ceiling of (AFC x 7/12)) - (CC1 + CC2 + CC3 + CC4 + CC5 + CC6)CC8 = ((AFC x 2/3) (PAF8 / NAPAF) subject to ceiling of (AFC x 2/3)) - (CC1 + CC2 + CC3 + CC4 + CC5 + CC6 + CC7)CC9 = ((AFC x ¾) (PAF9 / NAPAF) subject to ceiling of (AFC x ¾)) - (CC1 + CC2 + CC3 + CC4 + CC5 + CC6 + CC7 + CC8)CC10= ((AFC x 5/6) (PAF10 / NAPAF) subject to ceiling of (AFC x 5/6)) - (CC1 + CC2 + CC3 + CC4 + CC5 + CC6 + CC7 + CC8 + CC9)CC11 = ((AFC x 11/12) (PAF11 / NAPAF) subject to ceiling of (AFC x 11/12)) - (CC1 + CC2 + CC3 + CC4 + CC5 + CC6 + CC7 + CC8 + CC9 + CC10)CC12 = ((AFC) (PAFY / NAPAF) subject to ceiling of (AFC)) - (CC1 + CC2 + CC3 + CC4 + CC5 + CC6 + CC7 + CC8 + CC9 + CC10 + CC11)Provided that in case of generating station or unit thereof or transmission system or an element thereof, as the case may be, under shutdown due to Renovation and Modernisation, the generating company or the transmission licensee shall be allowed to recover part of AFC which shall include O&M expenses and interest on loan only.Where,AFC Annual fixed cost specified for the year, in Rupees.NAPAF = Normative annual plant availability factor in percentage.PAFN = Percent Plant availability factor achieved upto the end of the nth month.PAFY = Percent Plant availability factor achieved during the YearCC1, CC2, CC3, CC4, CC5, CC6, CC7, CC8, CC9, CC10, CC11 and CC12 are the Capacity Charges of 1st, 2nd, 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th and 12th months respectively.
