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Union of India - Section

Section 31 in Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2014

31. 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 :
N|- PAFM = 10000 x| ∑DCi/ {N x IC X (100 - AUX)}%|- i=1
Where,AUX = Normative auxiliary energy consumption in percentageDCi = Declared capacity (in ex-bus MW) for the ith 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 power plant basis, at the computed energy charge rate. Total Energy charge payable to the generating company for a month shall be:(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):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 defined in Regulation 42.
(6)In case the actual total energy generated by a hydro generating station during a year is less than the design energy for reasons beyond the control of the generating station, the following treatment shall be applied on a rolling basis on an application filed by the generating company:
(a)In case the energy shortfall occurs within ten years from the date of commercial operation of a generating station, the ECR for the year following the year of energy shortfall shall be computed based on the formula specified in clause (5) with the modification that the DE for the year shall be considered as equal to the actual energy generated during the year of the shortfall, till the energy charge shortfall of the previous year has been made up, after which normal ECR shall be applicable:
Provided that in case actual generation form a hydro generating station is less than the design energy for a continuous period of 4 years on account of hydrology factor, the generating station shall approach CEA with relevant hydrology data for revision of design energy of the station.
(b)In case the energy shortfall occurs after ten years from the date of commercial operation of a generating station, the following shall apply.
Explanation. - Suppose the specified annual design energy for the station is DE MWh, and the actual energy generated during the concerned (first) and the following (second) financial years is A1 and A2 MWh respectively, A1 being less than DE. Then, the design energy to be considered in the formula in clause (5) of these regulations for calculating the ECR for the third financial year shall be moderated as (A1 + A2 - DE) MWh, subject to a maximum of DE MWh and a minimum of A1 MWh.
(c)Actual energy generated (e.g. A1, A2) shall be arrived at by multiplying the net metered energy sent out from the station by 100 / (100 - AUX).
(7)In case the energy charge rate (ECR) for a hydro generating station, computed as per clause (5) of this regulation exceeds ninety 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 ninety paise per kWh only:Provided that in a year following a year in which total energy generated was less than the design energy for reasons beyond the control of the generating company, the energy charge rate shall be reduced to ninety paise per kWh after the energy charge shortfall of the previous year has been made up.
(8)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 further 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.