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State of Himachal Pradesh - Section

Section 36 in Himachal Pradesh Electricity Regulatory Commission (Promotion of Generation from the Renewable Energy Sources and Terms and Conditions for Tariff Determination) Regulations, 2017

36. Free Power.

(1)The Commission shall consider appropriate structure(s) of free power for determination of generic levellised tariffs for various categories of small hydro projects, as mentioned in regulation 33, duly keeping in view of the provisions of the State Hydro Policy for allotment of sites for small hydro projects, National Hydro Policy, Tariff Policy and the limits specified under sub-regulation(3):Provided that in case the structure of free power actually applicable to a project, duly curtailed as per sub-regulation (3), is at variance from the structure considered while determining the generic levellised tariff, such tariff shall be suitably adjusted based on the structure of free power applicable subject to the limit specified in sub-regulation(3):Provided further that in cases requiring determination of the project specific tariff, the Commission shall consider the structure of free power actually applicable to that project subject to the above and the limits specified in sub-regulation(3).
(2)In case of any change in the structure of free power for a small hydro project from that considered for the determination of generic levellised tariff or project specific levellised tariff in accordance with sub-regulation (1) or in cases where the adjustment in tariff on account of variation in free power has to be allowed as per the specific provisions contained in these Regulations, including those covered in regulation 17 and sub-regulation (2) of regulation 20, the distribution licensee shall adjust the tariff as per the following formula:-
Rate payable for the month for the net saleableEnergy (Rs/kWh) = a x (100-b)/(100-c)
Where, -"a" is the levellised tariff (in Rs/kWh) which is required to be adjusted under this regulation"b" is the free power (in percentage) taken into account or deemed as taken into account for the month, in "a" in the corresponding month of the tariff period by reckoning the date of commencement of operation of the project as the starting date of the tariff period."c" is the free power (in percentage) to be allowed in the tariff for the month subject to maximum limit of 13% free power(energy) and the provisions of sub- regulation (3)-Where free power is applicable at different rates for different parts of a month, the permissible free power (i.e "c") shall be determined under this sub-regulation separately for each such part and weighted average rate for the month as a whole shall be worked out by considering the total quantum of energy for each day of the month.
(3)The free power (in percentage) to be taken into consideration for the purpose of determination of tariff under sub-regulation (1) and/or any adjustment under sub-regulation (2) shall be subject to the following: -
(i)The free energy to be taken into account for any part of the tariff period for the purposes of sub-regulation (1), or to be allowed for any part of the tariff period for the purposes of sub-regulation (2), shall not exceed 13% free power(energy) which includes 12% free power to home State and 1% additional free power for Local Area Development Fund, as stipulated in the National Hydro Policy/ Tariff Policy;
(ii)Any quantum of free energy, if committed by the renewable energy generator over and above the 13% free power(energy) for any period shall not be factored into the tariff;
(iii)Additional free energy, if any, to be provided by the renewable energy generator to the State Government, on account of curtailment of waiver period due to delay in commissioning of project as per provisions of Implementation Agreement and/or for enhancement of capacity and/or for any reason attributed to the renewable energy generator shall not be taken into account even if the total free power for any period, including such additional free power, does not exceed 13% free power(energy);
(iv)The quantification and adjustment of free energy as well the energy accounting shall be made with reference to the energy projected/received at the interconnection point;
(v)The free energy to be allowed for any period for the purpose of subregulation (2) shall in no case be more than that actually deducted for that period in the energy accounts, out of the total energy received at the interconnection point.