Section 21 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014
21. Capacity Charges.
- The Capacity charges shall be derived on the basis of annual fixed cost. The annual fixed cost (AFC) of a generating station or a transmission system including communication system shall consist of the following components:(a)Return on equity;(b)Interest on loan capital;(c)Depreciation;(d)Interest on working capital; and(e)Operation and maintenance expenses:Provided that special allowance in lieu of R&M where opted in accordance to Regulation 16 and/or separate compensation allowance in accordance to Regulation 17, wherever applicable shall be recovered separately and shall not be considered for computation of working capital.
